First Seagull has significantly reduced its shareholding in Headlam.
The investment fund had spent months building up
its stake to more than 11%, while calling for a general meeting to replace three of the distributor’s non-executive director’s, including chairman Stephen Bird.
However, the day before the 2 June vote it withdrew its resolutions, claiming irregularities in voting.
It has now cut its shareholding from 11.06% to 7.08%.
Last week Headlam said it was looking at all
fund-raising options, bar putting the group up for sale,
in the face of increased losses and a drop in sales of almost 23%.
It said on 14 July that a refinancing process for the group’s debt package ‘is progressing at pace.’
The group’s share price and stock market capitalisation fell to record lows on the back of the 14 July announcement and continued to fall further in the following days, but rose by 2.8% on First Seagull’s shareholding reduction.
Despite the rise, the group had a stock market valuation of £4.3m at the time of writing.
First Seagull has been contacted for comment.
