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Electra : ELTA – update on Sherborne Investors

Electra has announced that, at the request of Sherborne (which holds 19% of the company), its Chairman met Edward Bramson of Sherborne Investors Management (pictured) on 24 July. At the meeting Mr Bramson suggested that Electra appoint three new directors, including Edward Bramson, and that he be given a mandate to conduct a strategic review of the company. He did not make any specific proposals at the meeting.

Electra points out that over the past ten years its has generated a return to shareholders of 268% – more than double the return on the FTSE All-Share Index (+129%) and more than six times the return on the Morningstar Private Equity Index (+39%).

Electra also makes the point that Edward Bramson would not be an independent director.

Electra has rejected Sherborne’s request.

It seems puzzling to us that, after having held a very large stake in Electra for some time, Sherborne is still not ready to tell shareholders what its long-term plans are for the company. Maybe this will trigger a response.

 

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