Metage Capital
Limited: open letter to Associated Capital Group, Inc.
Mr Bruce Lisman
Associated Capital Group, Inc.
191 Mason Street
Greenwich, CT 06830
For
Immediate Release
15th October 2020
Dear Mr Lisman,
Re: respecting the
vote by shareholders to discontinue the Gabelli Value Plus+ Trust
Plc. (“GVP”)
On 6th October 2020 you
held a webinar setting out the position of Associated Capital
Group, Inc. (“ACG”) on the continuation of GVP. When signing up to
this webinar, investors were asked to submit questions, however
none were addressed. We have been dissatisfied by the subsequent
response from ACG to the questions that we asked and believe that
other shareholders would share similar queries. We therefore ask
you to respond publicly to the following:
1. In the GVP
announcement of 6th October, the Board of GVP refers to “…a letter
received by the Board from the general counsel to ACG on
2 October 2020 indicating that
(unspecified) litigation concerning the company may be a distinct
possibility…” Can you please explain why ACG is threatening legal
action, what potential illegality or breach of contract you
perceive and what the aim of this litigation would be?
2. The “Magna
Carta of shareholder Rights” on Gabelli Investors, Inc.’s
website[1] states that it is in favour of “one share: one vote” and
that “…we will vote against…supermajority voting…” How is
attempting to frustrate the will of a clear majority of
shareholders consistent with Gabelli’s corporate governance
principles?
3. The Board has
offered the potential of an in specie redemption of ACG’s pro rata
share of the GVP portfolio or the ability to provide ACG with a
roll over vehicle with a similar strategy and manager. This would
enable ACG to continue its investment without frustrating the
desire of other shareholders for a cash exit. How would you justify
attempting to trap the majority of shareholders against their
will?
Finally we would like to thank the Board of GVP for their
steadfastness in a difficult situation, which is an excellent
demonstration of the highest standards of corporate governance in
London-listed investment
trusts.
Yours faithfully,
Tom Sharp, Director
Metage Capital Limited
Princes House, 38 Jermyn Street, London SW1Y 6DN, United Kingdom
Email: tom.sharp@metage.com
Tel: +(44) 203 813 8590
[1]
https://www.gabelli.co.uk/wp-content/uploads/2015/01/magnacarta092403.pdf