LONDON (SHARECAST) - Shares in LMS Capital jumped after the investment company said it planned to realise its investments after a disagreement over strategy with chairman Robert Rayne, who wanted the company to be broken up.
Rayne and shareholders holding around 35% of the firm's share capital had called for the company to be dismantled. LMS investments include the Texas-based cinema group Rave Reviews and the sewage and drainage company Pims Group.
Following the disagreement, LMS had sought to arrange the exit of the shareholders but could not find buyers willing to pay the price at which the shareholders would agree to sell their stake.
The Independent Committee no longer believes that the status quo is sustainable, given the wide discount at which the Company's shares trade (along with the shares of other similar companies) and in excess of one third of the Company's shares are held by the Rayne Concert Party, which is emphatic that the Company must pursue a realisation strategy, LMS said.
The Independent Committee has concluded that, whilst it has every confidence in the incumbent management team led by Glenn Payne, it would be in the interests of shareholders as a whole for a new strategy to be implemented which would require the company's portfolio to be realised in an orderly manner.