Investment company Thalassa Holdings Ltd has succeeded in blocking the general meeting resolutions of Aim-quoted Renewable Power & Light and wants board representation.
RPL was trying to sell its US operating subsidiary. More than two-thirds of the votes cast were against this. Thalassa was not the only one to vote against the motion. Thalassa has a 29.8% stake in RPL and shareholders owning a further 22% plus also voted against the sale.
RPL pulled out of its biodiesel operations and has been selling off its assets. RPL has distributed dividends worth 18p a share. It was the subject of a bid approach in November 2008 and this bid situation is still ongoing but RPL thinks it will be more difficult to reach agreement with a potential merger candidate.
RPL says that it will incur additional costs by keeping its US subsidiary and its liabilities.
Thalassa is keen on a revised strategy and doesn’t want any more cash distributed to shareholders. At the end of January 2010, RPL had $5m in the bank – 3.59p a share. The disposal would have reduced the cash to $3.5m according to Thalassa. At 1.875p a share, RPL is valued at £1.66m.
RPL says that it will meet Thalassa and other shareholders who voted against the disposal in order to talk about their alternative proposals.
At 52.5p a share, Thalassa is valued at £3.41m. There has hardly even been a trade in Thalassa shares. Director Duncan Soukup loaned the company an additional £300,000 last week. The loan lasts one year at carries an interest charge of 10%. Thalassa has already borrowed $701,000 from Soukup.
© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.