Novar plc (formerly Caradon plc).
Result of requisitioned EGM.
Active Value defeated with less than 1% of other shareholdings supporting their resolutions.
Overwhelmingly, shareholders have supported the Board in its strategy to continue the simplification of its businesses, while investing in opportunities that have potential to build scale and competitive advantage to create value for all shareholders.
Shareholders have recognised that it is not in their interests to make forced sales of businesses nor to restrict the management from making value-enhancing acquisitions. Shareholders have also voted to allow the management to decide when repurchases of shares are appropriate, subject to a regularly renewed authority from shareholders.
The Board believes these votes represent a vote of confidence and a mandate for the management to continue to pursue the strategy it put in place during 1998.
The Chairman of Novar will be writing to all shareholders shortly to inform them of the outcome of the EGM and to reinforce the Board’s commitment to its existing strategy. The results for the year to 31 December 2000 will be announced on Tuesday, 6 March 2001.
Commenting on the outcome of the EGM, Jurgen Hintz, Chief Executive of Novar, said:
We are pleased that the vast majority of shareholders have confirmed their confidence in the Board. The EGM requisitioned by Active Value has been a costly and unnecessary exercise in terms of both shareholders’ money and management time. Active Value clearly chose the wrong target at the wrong time.
The management will continue to transform and drive Novar in the pursuit of consistently improving results and returns to shareholders.
