Victoria consortium coup ‘invalid’

THE battle for control of carpet manufacturer Victoria has taken a fresh turn with the existing board saying attempts by a rogue consortium to stage a coup are invalid.

The consortium, headed by former Victoria chairman and director Alexander Anton, issued a statement on Friday calling for a general meeting of shareholders.

The purpose of the meeting was to seek the removal of non-executive directors, Nikki Beckett and Peter Jensen, and replace them as non-executive directors with consortium representatives Katherine Innes Ker, Geoff Wilding and Sir Bryan Nicholson plus Mr Anton.

The consortium, New Fortress Finance Holding, had proposed appointing Ms Innes Ker as chairman, while it said the new directors would “work with the existing executive directors and management team”.

However, in a statement this morning, the existing board, which announced on Friday it was appointing BDO to begin formal sale proceedings for the business, which operates Holmfirth-based Westwood Yarns, said the claims were invalid.

“The board is advised that the requisition is invalid as Alexander Anton holds less than 5% of the company’s issued share capital and New Fortress Finance Holdings Ltd is not a registered shareholder. Therefore, neither party has the authority to requisition a General Meeting,” it said.
 
“The board unanimously believes that the commencement of the formal sales process announced will achieve the objective of realising maximum value for shareholders, whilst safeguarding the interests of all stakeholders.” 
 
“Whilst the board expects that Mr Anton’s consortium will submit a valid requisition, the company has currently set a deadline of the end of February 2012 for the announcement of any firm offer for the company or its operating businesses.  Consequently, the board believes that it will be in a position to give all shareholders a real choice by the time of a General Meeting,” it added.

In the meantime, the board has urged shareholders to take no action and promised it would issue more information in due course.