UPDATE: Shaftesbury Shareholders Reject Waiver Of Pre-Emption Rights

(Alliance News) - Shaftesbury PLC on Thursday said all resolutions except for two were passed by ...

Alliance News 25 February, 2021 | 1:55PM
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(Alliance News) - Shaftesbury PLC on Thursday said all resolutions except for two were passed by shareholders at its annual general meeting.

The London-based real estate investment trust noted that resolutions 15 and 16, related to dis-application of pre-emption rights, and which were special resolutions requiring a 75% majority, did not receive sufficient support to be passed, receiving votes in favour of 72% and 71%, respectively.

Shaftesbury said it considers the flexibility afforded by these authorities to be in the best interests of the company.

Pre-emptive rights mean shareholders get first right to buy additional shares when a company issues new ones to raise money. Companies often prefer to place new shares with large institutions instead, saying this saves time and expense, which ultimately benefits all shareholders.

Therefore, the company confirmed that it will consult and continue to engage with the relevant shareholders to understand and discuss their concerns with respect to these resolutions.

Shaftesbury shares were trading 1.1% lower in London on Thursday at 645.00 pence each.

Early on Thursday, Shaftesbury said coronavirus restrictions had hurt its performance in the final quarter of 2020.

Shaftesbury reported 45% of rent collected for the quarter to the end of 2020, and 36% of January rents collected to date.

Going forward, the company noted early signs of improving occupier interest.

Shaftesbury said 10.8% of estimated rental value was vacant as at the end of 2020 compared to 10.2% at the end of September 2020. Shaftesbury noted that the net vacancy increase is largely due to scheme completions.

"The relaxation of pandemic restrictions will herald the revival of the West End's economy in the months ahead, with a gradual return of local and domestic footfall and the reopening of hospitality businesses, shops and its world-renowned cultural and leisure attractions," said Chief Executive Brian Bickell.

"Our portfolio is located in the heart of the most vibrant part of London and we are optimistic that the appeal of our carefully-curated destinations will drive the return of footfall and trading," added Bickell.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Shaftesbury PLC 640.00 GBX 0.00 -

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