boohoo Group PLC - Manchester-based owner of PrettyLittleThing, Karen Millen and Debenhams - Says independent proxy adviser Glass Lewis recommends voting against Frasers Group PLC-backed resolutions at the forthcoming general meeting. Frasers is seeking to appoint founder Mike Ashley and insolvency expert Mike Lennon to the boohoo board.
Glass Lewis says ‘appointing a director with significant historical ties to Frasers, without a comprehensive agreement in place to mitigate potential conflicts of interest, could raise further concerns among investors’ and concludes ‘shareholders would not be well served supporting the appointment of the dissident nominees [Mike Ashley and Mike Lennon] at this time’.
Frasers says boohoo has grossly exaggerated perceived conflicts and governance concerns in an open letter to shareholders. Frasers says it has now responded to all requested governance commitments from boohoo on December 10.
Frasers says the appointments of Ashley and Lennon are in the best interests of shareholders and their ‘sole objective would be to support CEO Dan Finley’.
Frasers has a 27% stake in boohoo.
boohoo current stock price: 34.39, down 0.3% in London on Thursday afternoon
12-month change: down 9.3%
Frasers current stock price: 627.00 pence, up 0.4% in London on Thursday afternoon
12-month change: down 32%
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