UK Edition
Shaftesbury's biggest shareholder votes against plans to give the company more freedom to raise cash
West End landlord Shaftesbury has had its ability to raise money curtailed after its largest shareholder, Hong Kong billionaire Samuel Tak Lee, voted against plans which would have allowed management to waive shareholder pre-emption rights in some circumstances.
Mr Tak Lee, who owns just over 25pc of Shaftesbury’s shares, blocked two resolutions at the company’s annual general meeting on Friday.
These would have allowed directors to ignore pre-emption rights in some cases, potentially allowing them to raise money more easily. The rights allow shareholders to have first refusal over new shares but can be discounted in some circumstances.
But a third resolution which Mr Tak Lee also voted against, which allows the directors of the company to allot shares, did pass.
Mr Tak Lee had raised concerns about the way in which Shaftesbury was raising money after it complete a £260m equity raising in December.
A letter from the businessman to shareholders at the time said: “The combination of a pre-emptive offering at a material discount to the market price and the manner in which shares were then allocated, has caused me great concern.”
But following today’s AGM, Jonathan Nicholls, Shaftesbury’s chairman, said: “Following the successful placing in December 2017, currently the board does not anticipate the need to raise further equity for some time.”
Shaftesbury reported on Friday that it had let more than half of the space in its new developments, as shoppers in central London continue to spend despite wider consumer uncertainty.
The company, which owns almost 15 acres of prime shopping space in central London, including large parts of Carnaby Street and Chinatown, said 52pc of space in its recently completed larger schemes had been let by the end of 2017. The number of visitors to its bars, restaurants and shops in the run up to Christmas had been high, it added.
Brian Bickell, chief executive of Shaftesbury, said: “The economic strength and resilience of London’s West End lies in its enduring local, national and global appeal as a destination of choice for people and businesses,” he added.
Shares in the company were up 0.74pc on Friday to 953p.