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Davenham Group

  • BY: Andrew Hore |
  • POSTED: 20/01/2011 |

Davenham Group, which recently defeated an attempt by David Anthony to take over its board, is in talks with its major shareholder about a reconstruction of the business but management continues to warn that shareholders will probably not get any value from their shares.

This has not stopped Anthony Murtagh increasing his stake to 6.01% in the asset-backed finance provider. That has pushed up the share price by 153% in the past month. It has fallen back 0.12p to 4.75p, which values Davenham at £1.24m.

In December, ACP Capital sold its 29.1% stake in Davenham for £133,000, or 1.75p a share. These shares were bought by Kingswood Property Finance.

Kingswood and Davenham are exploring the possibility that a reconstruction of the group could enable one or more of its division’s to recommence writing new business. This could include an opportunity for shareholders to invest more cash in the company. There is no guarantee that any proposals will be forthcoming from the assessment.

Anthony, who owns 14.9% of Davenham, wanted Gary Jennison and himself appointed to the board and the two existing directors Paul Burke and James Kerr-Muir removed from the board. More than two-thirds of the votes cast for the resolutions supported the existing board.

In August, Davenham failed to obtain approval from shareholders to cancel its AIM quotation.

Download the January edition of AIM Journal at http://www.hubinvest.com/AIMPDFJanuary2011_16.pdf

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