ThomasLloyd Energy Impact board urges shareholders to vote in favour of wind-up
TLEI's shares have been suspended since 25 April due to uncertainty over the valuation of its ‘RUMS’ solar park construction project in India.
In a stock exchange notice today (31 July), the board highlighted a number of reasons why it is unanimously recommending shareholders vote against the continuation resolution at a general meeting on 24 August, a decision it said it is not «making lightly».
This comes after affiliates of ThomasLloyd Global Asset Management called for a continuation vote on 11 July, which the board at the time said was «extremely disappointing».
TLEI's shares have been suspended since 25 April due to uncertainty over the valuation of its ‘RUMS' solar park construction project in India, in which 8% of the £138m portfolio was invested.
Chair Sue Inglis said the board had lost confidence in ThomasLloyd over the financial problems arising from the project, with several issues raising questions about the «quality and reliability» of the information being given to them by the manager.
Affiliates of ThomasLloyd Energy Impact investment manager call for continuation vote
For example, the board pointed out that the liabilities relating to non-completion of the RUMS project were estimated to be only $5m in April, whereas subsequent analysis revealed they could be up to $33.5m.
«The board is extremely disappointed that the investment manager has failed to explain who knew what and when about the economic unviability of the RUMS project,» said chair Sue Inglis.
«The investment manager's approach is forcing us to commission due diligence reports to ensure we have complete and reliable information on the company's investments, further delaying publication of the annual report and lifting the suspension.
»Com
Read more on investmentweek.co.uk
