A shareholder revolt has broken out at gas storage firm Infrastrata as two investors attempt to oust the board.
Peter Wale and Adrian Pocock, who together own about 5.05 per cent of the company's shares, have instigated a general meeting requisition to remove the existing board and join as directors themselves.
Infrastrata today said it will hold the meeting on 27 June, but it urged shareholders to back the current board. It argued there is no evidence that Wale and Pocock have a credible or materially different strategy or an in depth understanding of the company.
Wale, who is also a non-executive director at Strategic Minerals, told City A.M. his experience both on a board and as an investor coupled with Pocock's significant contacts make the two a strong team. He argued Infrastrata has been "can kicking" for years, creating no value for shareholders and often leaving them in the dark.
Infrastrata, which is listed on London's Alternative Investment Market (Aim) has one major gas storage project, Islandmagee, in Northern Ireland.
The current board "appears to be self-destructive in terms of shareholder value", Wale said. The board, which combined holds three per cent of the company, has failed to take part in recent share placings, overpays directors and struggles to raise funds, he said.
Wale and Pocock would be keen to change the path of the company by bringing in funding, partners and even offers to buy the company.
In its statement, Infrastrata said the two shareholders' actions have caused "unnecessary disruption and uncertainty" for its business and discussions with investors.
Wale said: "There’s no guarantee of a successful future company with the existing board or if the board changes, but I do believe we can offer something more than is already there. I appreciate that causes uncertainty and the potential for instability, but I wouldn't be doing this just for the sake of it if there wasn't the potential to create some value."