Posted - 20 Mar 2012 14:33 GMT
updated - 20 Mar 2012 14:45 GMT
Coller loses tussle with SVG
Coller Capital has lost a battle to force SVG into abandoning a new strategy, with almost all shareholders present at an extraordinary general meeting voting for the proposals. SVG is now free to invest in other managers besides Permira.
Shareholders today approved SVG’s plans to diversify away from its core relationship with Permira and to cap capital returns to investors at £170 million, according to a statement.
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 SVG Capital has a diverse shareholder base who have differing views and investment mandates. The board believes the reinvestment strategy balances the needs of all stakeholders
Nicholas Ferguson, SVG Capital
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At the EGM, held Tuesday in London, 66 percent of the total votes cast were in favour of SVG’s first resolution - to make investments in a select group of other managers in addition to Permira. That will now be adopted with immediate effect.
Coller Capital accounted for a large portion of the remaining 34 percent (85 million shares voted against the proposal, 62 million of which were tied to Coller). Jeremy Coller, chief investment officer of Coller Capital, was not personally present to vote, according to an SVG spokesman said. Coller declined to comment.
In the second vote - on a resolution to cap capital returned to shareholders through tender offers at £170 million - there was near-unanimity in favour with less than one percent of the proxy votes against and a show of hands sufficent to carry the resolution.
Nicholas Ferguson, the outgoing chairman of SVG, said in a statement: “In early 2011 the board of SVG Capital instigated a strategic review to consider options available to the company that would maximise long-term shareholder value. This was accompanied by extensive consultation with our leading shareholders. Today the resulting strategy has been approved by a clear majority of voting shareholders and an outright majority of all shareholders.
“Like any business, SVG Capital has a diverse shareholder base who have differing views and investment mandates. The board believes the reinvestment strategy balances the needs of all stakeholders and gives it the flexibility to control capital through a disciplined asset allocation framework focused on shareholder total return and NAV growth. We thank our shareholders for their support.”
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