The clash between DX (Group) PLC (LON:DX.) and one of its major shareholders rumbles on, after the parcel delivery firm came out and said it was “disappointed” by Gatemore Capital Management’s “disruptive” decision to requisition a general meeting.
News of the requisition first emerged yesterday afternoon (Monday), with Gatemore – which has an 11% stake in DX – proposing to replace two current non-executive directors with four new ones.
Gatemore wants to oust current non-execs Bob Holt and Paul Murray and bring in Ron Series, Paul Goodson, Russell Black and Lloyd Dunn in their place, while it also wants Series to be appointed chairman as well.
The resolutions will be discussed at the general meeting which is expected to be held within the next seven weeks.
Should the proposed changes get the go ahead from shareholders, all of DX’s non-executive directors will have been proposed by Gatemore, the company said.
Why is Gatemore calling for change?
The major shareholder told Proactive Investors that poor performance is one of the key reasons for wanting to make the proposed changes.
The group has been struggling of late and recently blamed issues in its Courier and Freight divisions for lowering its full-year profit and net debt expectations.
Gatemore added that there had been a “90% decline in shareholder value…during the chairman’s tenure”, while the OneDX integration programme which has been in place for five years has “failed”.
The investor also pointed out that the suggested new board members have in excess of 120 years of relevant experience.
“These nominees, collectively, would constitute one of the best and most well-rounded boards in the UK delivery sector,” Gatemore told Proactive.
Interestingly, Gatemore implied that it wasn’t the only investor looking for change, claiming that it has been “working with other large shareholders” to identify the possible board replacements.
Despite the clash and an initial dip in the share price earlier this morning, shares have rallied 3% higher to 8.92p.
Half year results are due on 31 March.
--Updates for comments from Gatemore--