SelfWealth vote a win for majority of shareholders: Datt Capital

SelfWealth vote a win for majority of shareholders: Datt Capital

An EGM of the third largest Australian broking platform business, ASX listed SelfWealth, voted overwhelmingly against a motion brought by interests representing approximately 16% of shares in the company to gain around 50% board presence and implement a so-called cost cutting strategy, notes Datt Capital Founder and CIO Emanuel Datt.

Following the EGM today Mr Datt says: “The EGM amounted to an attempted board takeover by a small minority group of shareholders. The attempt failed with the EGM voting roughly 2 to 1 against the motions brought by requisitioning shareholders via a 249D notice.”

Datt Capital holds just under 10% of the capital of the company, has been a long-term SWF shareholder and is supportive of the current management, board and business strategy.

“The requisitioning members, holding approximately 16% of the company, were requesting board representation equating to 50% of the board vote. Their proposed strategy focused on cost cutting measures and further delays in the product roadmap rather than leveraging and further monetising the strength of the SelfWealth brand.

“The overall impression was haphazard relative to the considered growth strategy being pursued at present by the company.

“We believe the resolutions equated to a takeover by stealth. Clearly this would have been a disproportionate and unacceptable level of influence relative to their collective shareholding.

“We believe that it would have been destructive to shareholder value to tear up the present strategy to ‘future-proof’ and lay the foundations for the next layer of services for the SelfWealth platform,” notes Datt.

He adds: “We support maintaining the present structure of the board and augmenting it in the appropriate manner.”