Field Fisher Waterhouse advises AIM listed Sovereign on fundraising and shareholder revolt
14 September 2009
Field Fisher Waterhouse LLP has advised on a £3.6m fundraising,
by way of a placing and open offer, for Sovereign Reversions plc,
an AIM listed company providing equity release products to
homeowners. The firm were also called upon to advise on an attempt
by a group of rebel investors to oust the present board.
The fundraising coincided with an attempt by a group of the
company’s shareholders to requisition an EGM and remove key members
of the board, replacing them with their own representatives who
would implement a strategy to divest the company of its assets.
Sovereign has a significant retail shareholder base and the battle
for control of the board was a rare occasion when retail rather
than institutional shareholders decided the outcome. The
support of a large number of these retail shareholders was
instrumental in defeating the attempt to oust the incumbent
board.
Corporate partner Dominic
Gurney-Champion led on both matters, assisted by senior
associates George
Cotter and Nicholas Heap. The group of rebel
investors was advised by Berwin Leighton Paisner.
The transaction comes at the end of a busy summer for Field Fisher
Waterhouse. The firm, which has a leading reputation in the
AIM market, has over 40 AIM and fully listed clients. So far this
year Field Fisher Waterhouse’s Corporate Finance Group has advised
on 25 transactions for AIM and fully-listed companies
including:
- Acting for AIM-quoted Ridge Mining plc on its acquisition by
Aquarius Platinum Limited implemented by scheme of arrangement, a
deal which valued Ridge at £95 million
- Acting for Micro Focus International plc, a FTSE 250 company,
on its acquisition of Borland Software Corporation for $113
million, followed by its readmission to the Official List and to
trading on the main market of the London Stock Exchange
- Acting for Mirabaud Securities and Ambrian Partners Limited on
an £18 million fundraising by AIM-quoted Kalahari Minerals plc
- Acting for Fox-Davies Capital Limited on a £16.5 million
fundraising for AIM-quoted Circle Oil plc
- Acting for Charles Stanley Securities Limited on a £12 million
fundraising by AIM-quoted System C Healthcare plc
Dominic
Gurney-Champion said: “We are delighted to have completed this
fundraising for our long-standing client Sovereign - the EGM
requisition was a very good example of the operation of shareholder
democracy and the shareholder vote represented a strong endorsement
of the existing Board’s strategy.
I am also encouraged by the level of AIM activity we have been
involved with this year – whilst the level of IPOs is still very
low, we are seeing an increasing level of activity amongst AIM
listed companies either through acquisitions and disposals or
secondary fundraisings.”
For further press information, please
contact:
Louise Eckersley, PR Manager,
Field Fisher Waterhouse LLP on 020 7861 4120.