Revolution Beauty Group’s (RBG) board has said it will postpone its AGM in response to what it calls the ‘hostile’ action of its largest shareholder boohoo. As previously reported here, boohoo had issued a statement saying that it would use the AGM to vote against the reappointment of three of RBG’s directors and appoint instead two boohoo non-executive directors.
RBG says it was ‘on the cusp’ of having its shares on AIM restored and has attacked boohoo calling it opportunistic and self-serving, and not being in the interests of other company shareholders. RBG said that boohoo’s actions appear to be a cynical attempt to seize control of the company without financial outlay nor any compensation to revolution Beauty sharholders, and would appear to be a reckless strategy unless boohoo were confident of support from other shareholders of the company.”
In its statement to the stock exchange, RBG said: “The approach taken by boohoo towards Revolution Beauty is nothing short of value-destructive, opportunistic and self-serving. At a time when, thanks to current management’s tireless efforts, the company’s fortunes are finally looking up, with business back on track and re-admission to trading on AIM being potentially imminent, boohoo is seeking to stage a board and management control coup without making a general offer, or paying a single penny, to independent shareholders of the company, and with no reasonable justification for its wholesale and dramatic proposed changes to the executive management team.”
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