The clock is now ticking on the push for a board spill at Hunter Hall Global Value, with the lodgement on Tuesday of a formal notice to the company's board to hold a shareholder meeting to consider the matter.
Well-known fund manager Geoff Wilson is seeking to remove the company's existing directors and replace them with corporate lawyer Kym Evans, journalist Glenn Burge and Emma Davidson, a London-based investment adviser.
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Peter Hall resigns from Hunter Hall role
Fund manager Peter Hall confirms his resignation as chief investment officer of Hunter Hall stating personal reasons. Vision courtesy ABC News 24.
All three of Mr Wilson's nominees are independent of his group of listed investment companies as well as both Hunter Hall Global Value, and its management company, Hunter Hall International.
Mr Wilson is also seeking to slash directors' fees in half as he pushes the board to offer all shareholders the ability to sell their shares in the company at their net tangible asset backing, a call that Hunter Hall Global Value is resisting. Net tangible asset value after tax was $1.24 as at January 31.
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Wilson Asset Management and other associated entities have accumulated an 11.5 per cent stake in Hunter Hall Global Value.
Since Mr Wilson went public with his proposal, Washington H. Soul Pattinson and Co has emerged with a 6.5 per cent shareholding in Hunter Hall Global Value. Valued in the sharemarket at about $300 million, Hunter Hall Global Value is the largest single asset of Hunter Hall International, which Soul Pattinson is seeking to gain control of.
Late last year, Soul Pattinson snapped up a 19.9 per cent stake in Hunter Hall International from the company's founder, Peter Hall, paying $1 a share at a time when the shares were trading at more than $2.30. Mr Hall decided to sell out after he was wrong-footed by the election of Donald Trump as US President late last year.
Soul Pattinson is now seeking to acquire Mr Hall's remaining 24 per cent stake in of Hunter Hall, offering $2 after initially offering $1 a share. A rival bidder, Pinnacle Investment Management, is also offering $2 a share.
However, if Hunter Hall International loses control of Hunter Hall Global Value, this will have a significant impact on the value of the investment management company.
"In our view, Mr Hall's sudden, unexpected resignation constitutes a corporate governance crisis, which has negative implications for [Hunter Hall Global Value]," Mr Wilson said on Tuesday in a letter to shareholders, which was also critical of a series of decisions made by the board that it said had led to the "long-term underperformance" of the shares.
"We expect the new directors will hold the investment manager's performance to account."