Activist fund manager Bluebell Capital Partners is launching an activist campaign for changes at Richemont’s ( OTCPK:CFRHF ) board and in its share structure.
The activist hedge fund listed demands including an increase in the minimum number of board members to six and a shift toward equal representation of A and B class shareholders. B shares are currently controlled by CEO Johann Rupert, constituting about 10 times the voting power of A shares. The requests also entail the designation of an A share representative on the company board.
The proposals made by the London-based firm are set for a vote at the Cartier parent company’s annual meeting on September 7.
“The Company's Board is considering the proposals and will communicate its recommendations on this subject in due course,” a statement from Richemont read.
No further details on negotiations were disclosed. It is worth noting that voting on the proposals will take place under the current structure, with Rupert’s B shares holding a 51% voting stake. Effectively, approval of any proposal is at his discretion.
Read more on recent luxury retail trends .
For further details see:
Richemont comes into crosshairs of activist investor