An activist investor is demanding a shake-up at Speedy Hire Plc (LON:SDY), boosting its shares.
Toscafund, the plant hire company’s biggest shareholder, is tabling a motion at a forthcoming general meeting to urge the removal of executive chairman Jan Astrand.
It also plans to ask shareholders to appoint corporate turnaround expert David Shearer as a director.
Toscafund has been a shareholder in Speedy since 2013 and now owns 19.5% of the company.
It said in an open letter to Speedy’s board that it believed the changes were necessary to allow the group to progress its turnaround plan.
The investor criticised Astrand’s performance during his time at the helm, saying the company’s share price had fallen 34% since his appointment a year ago and by 43% over three years.
It said it believed Shearer would be an asset to the board in carrying out its turnaround plan and had the experience “to examine any suitable consolidation prospect.“
Martin Hughes, Toscafund’s founder, said: “The decision to call a general meeting has not been taken lightly.
“Toscafund takes pride in supporting the businesses in which it invests and invariably votes in favour of their AGM motions.
“This is the first time in our 16-year history that we have felt compelled to take such action. Now we have made these issues public, we would welcome open dialogue with all other shareholders. “
It added: "Toscafund calls on Speedy Hire’s other shareholders to support these motions in the interests of the business."
Speedy Hire said in a statement that it would call the meeting, but did not respond to Toscafund’s comments.
“Shareholders are advised to take no action at this time. Further announcements will be made in due course,” it said.
Shares in Speedy Hire rose 0.8p, or 2.4%, to 33.8p in late morning London trading.