Consortium steps up the pressure in bid for Victoria

New Fortress Finance Holdings, led by Victoria’s former chairman Alexander Anton, wants to replace the company’s two non-executive directors with four of its own choosing.

It claims the current board has “failed to create meaningful value”, adding proposed replacements will bring “fresh impetus”.

In response, Victoria put itself up for sale, to offer “real choice” to shareholders.

New Fortress plans to replace chairman Nikki Beckett and non-executive director Peter Jensen with Katherine Innes Ker as chairman, plus Alexander Anton, Geoff Wilding and Sir Bryan Nicholson.

The consortium claims to already have the backing of 46 per cent of the manufacturer’s shares.

“The current board has failed to create meaningful value,” said New Fortress in a statement. “Shareholder value and returns are unacceptably low. That is why approximately 46 per cent of shareholders – a practical majority – want the board changed to one that can give a new approach and fresh impetus.

“The proposed new directors have a proven track record of building shareholding wealth.

“The current board’s sudden extraordinary decision to put the company up for sale in a rushed and unplanned way is irresponsible.

“Almost certainly it will not realise the best value for shareholders.

“Once appointed, the proposed new directors will work quickly to restore calm and confidence to the business.”

New Fortress said it plans to grow the business both in the UK and Australia, tapping new markets in flooring. It also plans to sell unspecified non-core assets, reduce working capital and minimise debt.

However, New Fortress said it has no plans to close down the UK business, nor to leverage it with an acquisition spree.

It added there are no plans to take the business private, jeopardise employees’ livelihoods or merge with Flooring Brands Limited – an Australian carpet firm and major customer of Victoria.

Kidderminster-based Victoria spins yarn at its mill in Holmfirth, West Yorkshire, where it employs 130 staff.

It has urged shareholders to vote against the resolutions at a meeting in Birmingham on March 6.

The company insists it has a track record of improving shareholder value, and has a clear strategy for becoming the leading floor covering brand in the UK and Australasia.

“The proposed directors are not currently offering shareholders any immediate financial return and therefore the board believes that the proposed directors’ proposal is not compelling,” said Victoria’s managing director Alan Bullock.