MMG could scupper $140m DNZ float
MMG director David van Schaardenburg says his advice is a vote by 75% both by value and by number of holders of DNZ's "A" shares would be legally binding on the company. DNZ has two classes of share with the investors owning the "A" shares and the manager owning all the "B" shares.
MMG's advice is at odds with information in DNZ's prospectus which says the "B" shares holder "control the composition of the board of the company and therefore its ultimate governance function and are able to block any shareholder resolution." The existing DNZ investors have had no opportunity to vote on the capital raising.
MMG has written to DNZ's more than 8,000 existing investors asking them to vote to remove three of DNZ's six directors, Edward Harvey, Mark Hopkinson and former Brook Asset Management chairman Simon Botherway, from the board and to replace them with van Schaardenburg and MMG chief executive Derek Young.
Harvey and Hopkinson are the DNZ investors' representatives on the board.
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