Dee Valley’s activist shareholders reach end of line

Shareholders in water company Dee Valley, who had their ‘no’ votes on the takeover bid by Severn Trent ruled invalid by a High Court judge, will not appeal the verdict.

The move, despite being given leave to appeal on Friday, means the protracted takeover saga should be concluded this week

The High Court last week ruled in favour of Severn Trent’s prolonged takeover of Dee Valley, blocking the attempts of an activist shareholder to flood the voting process with opposition.

The proposed £84m takeover of the Welsh water group required shareholder approval on two measures – by shareholders representing not less than 75% of the shares and by a simple majority of shareholders.

It was the second test that created the blockage in the takeover, after one shareholder made 445 recent transfers of small holdings.

At a meeting last month two votes were taken, with the first vote not including the holders of the transferred shares while the second vote did. 

The first vote of shareholders was massively in favour – approving the deal 363 to 32 – when the shareholders holding the transferred shares were included this switched to 363 in favour and 466 against.