Skywest takeover suitor CaptiveVision Capital has had its two resolutions – to remove chairman Pat Ryan and to cap directors’ remuneration at $160,000 – resoundingly rejected at an extraordinary general meeting on June 28.
The EGM, called by CVC, incited 86 per cent of Skywest’s shareholders to vote. Of that large turnout, 75 per cent voted against removing Mr Ryan from the board and 74.2 per cent voted against capping directors’ fees at $160,000 for 2003-04.
After the meeting a relieved Mr Ryan said the result and voting turnout was “a strong endorsement for the strategy the board is pursuing”.
“Shareholders are recognising Skywest has more value than 20 cents a share,” he said.
However, whether the shareholder response to the resolutions will translate to the success or failure of the CVC bid remains to be seen.
That bid runs until July 16 and CVC’s Clinton Hicks told the meeting the company would be announcing to the Australian Securities and Investments Commission that it had exceeded a 25 per cent stake in the regional airline.
“We have a substantial shareholding in Skywest. We don’t believe our shareholding is being properly managed,” he said.
The CVC representatives, including director Jeff Chatfield, were not present when the final results of the meeting were read out.
On June 25 the Skywest board released a letter to shareholders advising them to reject the CVC bid.
In that letter the company advised that Skywest’s shares were worth 24 cents, according to a value attributed by independent expert Pricewaterhouse-Coopers.
