Resolution support for Chapelthorpe

CHAPELTHORPE, the fibres group which has received a takeover bid from activist investor Peter Gyllenhammar, said all the resolutions proposed at its AGM yesterday were approved with the exception of two.
By The Newsroom
Published 12th Aug 2010, 15:33 BST
Updated 12th Aug 2010, 15:33 BST

This followed the board's decision to remove two resolutions relating to the re-appointment of Tom Russell as a non-executive director and the reappointment of auditors PricewaterhouseCoopers.

Mr Russell resigned from the board in July following the decision by Chapel-thorpe's second biggest shareholder, Hanover Investments, to sell its stake to Mr Gyllenhammar. Mr Russell was Hanover's board representative.

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Chapelthorpe has established a committee of independent directors to consider Mr Gyllenhammar's offer.

The Bradford-based group fell substantially into the hands of Mr Gyllenhammar in July when he bought a quarter of its shares from Hanover, giving him a 54.6 per cent stake. He then made a mandatory offer for the rest of the company.

Chapelthorpe is talking to its advisers about the 25p a share offer, which values Chapelthorpe at 5.1m.

Mr Gyllenhammar invests in poorly valued firms, and has stakes in Yorkshire PLCs including Abbeycrest and 1st Dental. Acquiring 75 per cent of Chapelthorpe would allow Mr Gyllenhammar to take it private.

Analysts expect remaining shareholders to sell up, as it offers them a chance to turn their investment into cash.

Chapelthorpe recently returned to profit for the first time in six years.

Related topics:AGMPricewaterhouseCoopers