The PRS REIT PLC (LSE:PRSR) shares jumped more than after a group of disgruntled investors called for the removal of chairman and former British Land executive Stephen Smith and another non-exec, David Francis.
The dissidents comprise a group of institutional investors that speak for 17.3% of the shares, including Harwood Capital, Alder, CG Asset Management, Waverton and CCLA.
Two other investors, Ruffer and Asset Value, speaking for 1.6%, are also said to be in favour of the resolution.
The proposals call for Robert Naylor to be appointed chairman and Chris Harwood as a non-exec.
PRS REIT, which has a market capitalisation of close to £500m, is the UK’s largest build-to-rent platform and is backed by government agency Homes England, with more than 5,300 new rental properties on its books.
According to Sky News, the dissident shareholders are unhappy with the extension of a management agreement with Sigma PRS Management until 2029.
MIGO Opportunities, a special situations investor, is said to have acquired a stake in PRS this week on the grounds that the action by dissidents would spark a break-up of the business at a big premium to the current price.
PRS REIT floated in 2017 at 100p and after a 6.5% rise today was trading at 95.3p.