LONDON (Reuters) - Britain’s Mears Group (MERG.L) on Tuesday said it would now consider activist investor Shareholder Value Management’s (SVM) preferred candidate to replace Chairman Bob Holt, after previously rejecting its plans.
The social housing maintenance and repair services provider said a new chairman would be appointed before the end of October and SVM candidate Andew Hogarth will be considered “alongside other candidates”.
As a result of the agreement between Mears and SVM, the activist had withdrawn a request for the company to hold a general meeting to vote on the issue.
“We are satisfied with this promising outcome,” Gianluca Ferrari, director at SVM, told Reuters. “The candidate we have proposed has set the bar very high and the ball is now in the board’s court to effect positive change.”
Mears on July 12 said it rejected SVM’s call for a non-binding resolution to appoint Hogarth, the former CEO of Staffline Group (STAF.L), as chairman.
The company said in June that Chairman Bob Holt would not stand for re-election at the annual general meeting in 2019 after SVM called for his removal.
Editing by Simon Jessop