Thalassa Holdings Limited Update on The Local Shopping REIT PLC (6296Q)
December 01 2016 - 1:00AM
UK Regulatory
TIDMTHAL
RNS Number : 6296Q
Thalassa Holdings Limited
01 December 2016
1 December 2016
Thalassa Holdings Ltd
(Reuters: THAL.L, Bloomberg: THAL:LN)
("Thalassa" or "the Company")
Update on The Local Shopping REIT PLC ("LSR")
The Board of Thalassa notes LSR's announcement of 29 November,
repeating the false accusation that Thalassa is attempting to
obtain control of LSR "by the back door". The Board of Thalassa
does not believe the proposed nomination of John Hutchinson to the
LSR board (being something which the LSR board had previously
offered to Thalassa after its share acquisitions) constitutes
seeking control in the manner described.
The Board of Thalassa has consulted other major shareholders in
LSR in relation to the proposed resolutions set out in the Notice
of General Meeting dated 22 November 2016 (the "Notice"). Despite
what appears to Thalassa to be the manifest failure of the LSR
board to execute the investment strategy adopted in 2013 ("New
Investment Strategy") and, by its own admission, a management
contract which needs to be renegotiated, a number of major
shareholders have indicated that they intend to vote in favour of
the current board. In this context and given LSR's unwillingness to
engage with Thalassa to bring this matter to a speedy conclusion,
there seems no way to avoid the General Meeting going ahead despite
it being largely a fait accompli. Accordingly, Thalassa announces
its intention to abstain from voting on resolutions 1, 2, 3 and 5
set out in the Notice, being the removal of Stephen East and
Nicholas Vetch and the appointment of Duncan Soukup and Toby
Burgess respectively. The Board of Thalassa will vote in favour of
the appointment of John Hutchinson (resolution 4) and against
reducing the number of Directors (resolution 6).
Duncan Soukup, Chairman of Thalassa, said:
"Whilst we vigorously maintain our criticism of the performance
of the LSR board as we have previously set out, we acknowledge that
without the support of fellow LSR shareholders there is no mileage
in Thalassa pursuing a course of action which is destined to fail.
We are surprised at the support other shareholders have expressed
for the current board of LSR, given the paucity of disclosure and
yet another failed investment plan, but feel that without their
support that there is no point turning a corporate action into a
personal crusade. We have no personal issues with Messrs East and
Vetch merely the implementation, execution and associated costs of
the New Investment Strategy.
That said, we are pleased that the LSR board has already taken
steps to improve the level of disclosure to the market,
acknowledging that the terms of the Internos contract should be
reviewed and engaging with LSR's stakeholders, particularly HSBC.
We have and always will support any proposal in the best interests
of LSR, its shareholders and stakeholders, which is why we have
decided on the pragmatic approach taken in respect of our voting
intentions."
Investor Enquiries:
Thalassa Holdings Ltd
Duncan Soukup, Chairman +33 (0)6 78 63 26 89
WH Ireland Limited (Nominated Adviser and Broker)
Chris Fielding, Head of Corporate Finance +44 (0)207 220 1650
Press Enquiries:
Square1 Consulting (Public Relations)
David Bick +44 (0)207 929 5599
www.thalassaholdingsltd.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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