Voo Stock – Nam Tai rejects activist fund IsZo’s push to call for special meeting
BOSTON, Aug 5 (Reuters) – Nam Tai Property Inc on Wednesday pushed back against IsZo Capital’s campaign to replace members on its board, saying the activist investor misunderstands its business and that its nominees are not qualified to guide the China-based real estate company.
“The actions taken by IsZo risk derailing the progress the Company is making on executing its strategic objectives and delivering enhanced value to shareholders,” Nam Tai said in a statement. “Nam Tai urges all shareholders to refrain from taking any action, including executing a written request for a special meeting at this time.”
It said the board and management team are managing costs, improving products and services and “unleashing the value” of ongoing projects.
Last month, IsZo, a New York-based firm which owns roughly 9.8% of the nearly $300 million real estate company, appealed to other shareholders for support to install six new directors. The company counts index fund heavyweights BlackRock, State Street and Vanguard and the California Public Employees Retirement System (CalPERS), the largest U.S. pension fund, as investors.
IsZo’s founding partner, Brian Sheehy, accused the board of conflicts of interest, backing a questionable acquisition strategy and having no credible plan to boost Nam Tai’s share price.
The company said that six of seven directors are independent and that its audit, nominating, and corporate governance committees are all comprised of entirely independent directors. (Reporting by Svea Herbst-Bayliss; editing by Jonathan Oatis)