ThomasLloyd Energy Impact manager urges continuation to prevent destruction of shareholder value
The trust's shares have been suspended since 25 April due to uncertainty over the valuation of its Indian construction project.
TLEI's board recommended shareholders to vote against the continuation of the company on 31 July after losing confidence in its investment manager, ThomasLloyd Global Asset Management. This comes after affiliates of the manager called for a continuation vote on 11 July.
A day later, the firm called for the board to immediately withdraw its shareholder recommendation to vote against continuation. It said this would be detrimental to shareholders and said it considered the actions of the board to be «self-serving».
In a statement released today (11 August), ThomasLloyd Group reiterated that it «vigorously refutes» allegations made against it by the board and said it has written to the board privately explaining why it believes these allegations are untrue.
ThomasLloyd Energy Impact trust manager calls for board to withdraw wind-up recommendation
The firm noted that voting against continuation will require the board to propose the reconstruction, reorganisation or winding up of the trust to shareholders by Christmas Eve.
This would immediately and permanently destroy shareholder value and only result in «immediate serious negative consequences» for TLEI, which include a going concern risk, TLEI's reputation in Europe, TLEI's reputation and its portfolio companies' reputation in other countries; TLEI's investment pipeline potential and future share price performance.
The trust's shares have been suspended since 25 April due to uncertainty over the valuation of its Indian construction project, which it has since walked away from. This suspension will only be lifted once the audited results have
Read more on investmentweek.co.uk
