Posted: Fri 13th Jan 2017

Mystery 445 Single Share Play Sends Dee Valley Takeover Decision To Court

Wrexham.com for people living in or visiting the Wrexham area
This article is old - Published: Friday, Jan 13th, 2017

A mystery shareholder is rumoured to have donated several hundred shares in Dee Valley Water to local people and employees, a move that could mean a clause over the number people (not just shareholding) comes into play on the takeover vote.

The attempt by Severn Trent Water to take over Dee Valley Water was potentially derailed at a meeting yesterday, with one eagle eyed shareholder spotting the company rules were slightly different from normal – and then gave 445 shares to what is thought to be 445 people.

The background is outlined here in the Daily Mail Money section, which reads: “…the board was scrambling to see if the attempted coup was legal, with a High Court hearing scheduled for January 18 to decide whether the transferred shareholders’ votes should count.”

“The 445 people handed shares have only one each. But according to a scheme of arrangement for Dee Valley, the takeover can only happen if approved by 75 per cent of total voting shares and, crucially, of individual shareholders.”

The results of the meeting are reported twice in an official stock market release, one with the ‘transferred shares’ included and one without. One with the included shares indicate the bid could be blocked, but if they are ruled out the takeover looks likely to complete.

Responding to the Dee Valley Water EGM held at the Ramada Hotel Wrexham yesterday, which saw a peaceful protest outside, Llyr Gruffydd, Plaid Cymru AM said:

“The future of Dee Valley Water and its staff hangs in the balance after the EGM. Despite the meeting, it’s clear that next week’s court ruling on whether new shareholders can vote on this crucial matter is going to decide matters.

“These new shareholders are, as far as I’m aware, key to the final decision. Severn Trent needs 75% of the total shares, which it obtained today through proxies. But crucially 50% of shareholders also have to agree to the bid so these new shareholders could scupper that majority if the court permits them.

“So the final decision rests with the court. I very much hope that the judge’s decision will be made on the basis of fairness and equality – new shareholders are just as deserving of a vote as existing shareholders. Many workers and their families at Dee Valley Water now have a small stake in the company and they deserve a voice just as much as the large institutional shareholders. It would be a miscarriage of justice to prevent them from having a say.

“I will continue to campaign with the staff and fight for their best interests. This is about jobs, local suppliers, customer service and the economy but it’s also about a vital natural resource and whether the water industry in Wales should be run from Wales or from Coventry.”

The High Court will now decide if the new minority shareholders votes will be allowed, or if the takeover will go ahead with them ruled out.



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