PRESS RELEASE 88 17/02/2017
Alliance Trust have convened a General Meeting on the 28th February. It includes 4 resolutions covering the change in investment approach and the proposed share buy back of shares held by Elliott.
Our recommendation is that shareholders vote “FOR” all the resolutions.
ShareSoc is issuing this press release because we understand that some institutional investor advisory services have expressed some concerns about the proposals.
The Alliance Trust Shareholder Action Group which has been supported by ShareSoc is satisfied that the new Board of Directors has made good progress in revitalising the Trust since it was appointed. The steps taken have substantially closed the share price discount to net asset value (a long standing concern of many investors), the disposal of the non-
The repurchase of the Elliot shares will avoid future pressure from them and the purchase appears to be at a fair price and does not favour them over other investors who can currently sell shares in the market at a similar price and will continue to be able to do so.
For those reasons we support the recommendation of the Directors to vote in favour of the resolutions. We encourage all shareholders to ensure that they vote on these important resolutions.
If the resolutions at the General Meeting were defeated then it would put the company back at square one and potentially create major problems. Investors need to consider the proposals bearing in mind the history of the company and the other options available. In other words, a holistic consideration of the proposals needs to be taken rather than taking issue with minor technical points.
For further information please contact:
Deputy Chairman, ShareSoc