(Reuters) -Elementis’ shareholder Gatemore Capital warned it would unite other shareholders and seek the removal of the British specialty chemicals firm’s chairman via an extraordinary general meeting if it failed to call for a strategic review immediately.
“Accelerating the cost-savings program, replacing the current CEO, and conducting a strategic review — including a potential disposal of the Talc business — are essential to improving the company’s performance and unlocking shareholder value,” Gatemore, which owns about 4.5 million shares in Elementis, said in a letter to the company’s board on Monday.
Gatemore had called for the Elementis board to review its operations in April and replace the CEO amid falling share price, following largest shareholder Franklin Mutual Advisers urging the board to initiate a sales process.
“As we noted in our most recent trading update, the business had a strong start to the year, and we look forward to updating the market at our interim results on Aug. 1,” an Elementis spokesperson told Reuters in an emailed response.
Shares in the London-listed firm were marginally down 0.4% at 1238 GMT.
(Reporting by Prerna Bedi in Bengaluru; Editing by Rashmi Aich and Shailesh Kuber)
