Digital 9 Infrastructure shareholder calls for strategic review by 3 November

investmentweek.co.uk:

The shareholder said that if a strategic review is not initiated by 3 November, an EGM to remove and replace the board's directors will be requisitioned.

In a letter to DGI9 chair Phil Jordan, the firm said the board must initiate a «proper» strategic review supported by an independent financial adviser acceptable to them, and elect a new independent board member with M&A experience to oversee its execution.

«A failure to evaluate options for the company could result in a serious breach of fiduciary duty that will cause irreparable harm to the company and its shareholders. In such circumstances there will inevitably be cause to investigate,» it said. 

Digital 9 Infrastructure weighs divestment from crown jewel Verne Global

The firm said shareholders representing over 20% of ordinary shares had expressed support for the recommendations, which include a call for a review of the trust's ongoing divestment process of crown jewel Verne Global announced last week (27 October).

Aqua Ventures said the divestment would likely precede a sale of DGI9 and risk «value destruction» by stranding the trust's other assets. According to the firm, the move raises doubts that the board was «taking seriously» shareholder feedback during a recent consultation process. 

«Shareholders have yet to see a commensurate response or any resolute actions being taken in response to their feedback in order to mitigate ongoing value destruction,» the firm said.

«We understand following our discussions with other shareholders that many have already insisted on a strategic review. Instead, we observe that the board's actions have only exacerbated the situation.»

The firm said that certain actions from the trust, such as re-affirming its dividend only to