Boohoo has won the vote at today’s General Meeting, meaning shareholders have rejected Frasers Group’s proposals for the Manchester ecommerce group.
63.77% of shareholders voted against the proposal that Michael Ashley be appointed as a director of the Company.
63.76% of shareholders voted against the proposal that Michael Lennon be appointed as a director of the Company.
“I would like to thank our shareholders for their support of the Board. We remain focused on delivery of our Business Review with the objection of unlocking and maximising value for all shareholders,” said Tim Morris, Independent Non-Executive Chair of boohoo Group.
Dan Finley, Chief Executive Officer of boohoo Group, added:
“Our Group is a dynamic business, with great brands and extremely talented people, underpinned by best-in-class infrastructure. Since my appointment, I have hit the ground running, taking immediate and decisive actions to maximise and unlock value for all shareholders.
“I am super energised to realise the significant opportunities I see for this business. I continue to believe this group is materially undervalued. Our most important work is ahead of us, and we will drive value for all shareholders.”
Corporate espionage claims and a sack full of open letters, there’s clearly no love lost between Frasers Group and Boohoo.
And it’s played out in a very public way. Except, ironically enough, today, with journalists not allowed to attend its general meeting, where shareholders voted on whether to install Mike Ashley as Chair and also place restructuring specialist Mike Lennon on the board.
Mike Ashley’s Frasers Group holds 27% of Boohoo shares and he’s used that position of power to push for the vote.
He claimed this is so that he could turn boohoo around, calling out “dismal” results, a lack of transparency, “terrible” refinancing and the much publicised supply chain issues.
Boohoo has strongly defended its position and has stated that Ashley is acting in self interest. It has also pointed out conflicts of interest, as Frasers Group owns a 23.6% stake in its competitor, Asos.
Ever since Frasers started increasing its stake in both ASOS and Boohoo there have been analysts speculating that it was eyeing a merger between the two ecommerce firms – despite both companies’ reluctance.
While this may be the end of this battle, Ashley’s Frasers Group remains a large shareholder and if he really wanted to push for control at Boohoo, he could seek to buy up more shares, to take a majority 51% stake.
