Prodesse (LSE:PRD)
Historical Stock Chart
3 Anos : February 2009 para February 2012
Prodesse Investment Ltd. (PRD.LN) Friday said it would call an extraordinary general meeting to wind down its business, just months after Anglo-U.S. hedge fund Polygon failed to do the same thing on its own terms.
Prodesse invests solely in mortgage-backed securities issued and guaranteed by U.S. housing agencies Fannie Mae (FNM), Freddie Mac (FRE) and Ginnie Mae and has previously said it wasn't concerned about the agencies' need for large amounts of government aid to deal with ongoing losses.
It has successfully fought of two attempts by Polygon, one of its largest investors with a 25% stake, which last December and again this April forced a shareholder vote to replace the board with its own choice of directors with a view to liquidating, or winding down, the business. Both times, shareholders backed management and rejected Polygon's proposals.
Polygon's attempts were widely seen as forcing a return of cash to finance its own funds, which were facing heavy investor withdrawals, and that an early liquidation wouldn't benefit all shareholders.
However, Prodesse Friday said that it was winding down the business because of the lack of liquidity in its stock, which isn't widely held, and which was now weighing on a majority of shareholders who wanted their money back.
"The directors have repeatedly discussed a number of options for attracting additional investor interest in order to improve liquidity in the company's shares but it has become evident that a majority of shareholders wish to realise their investment in the company," Prodesse added.
Other shareholders include London-based investment managers Ruffer LLP, which has a 26% stake and F&C Asset Management (FCAM.LN) with 9.5%, according to FactSet.
"Doing it this way, the company gets a controlled sale rather than having to sell assets in a fire sale," a person close to the company told Dow Jones Newswires.
Prodesse was due to hold a vote on whether to continue next summer, some five years after its listing, but has brought the date forward because of investor concern.
The company declined to comment on the likely amount it would recover in a sale.
No date for the EGM was given in its statement Friday.
Near the close, the shares were down 4 pence, or 0.8%, at 499 pence.
Company Web site:www.prodesse.co.uk
-By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241; marietta.cauchi@dowjones.com