Rejects Scheme of Arrangement Proposal for ISS Group (ASX:ISS)
Sydney, June 5, 2013 AEST (ABN Newswire) - ISS Group's (
ASX:ISS) second largest shareholder Microequities Asset Management has rejected the scheme of arrangement proposal from P2ES Holdings Inc. announced yesterday.
Chief Investment Officer of the Deep Value Microcap Fund Carlos Gil said "we deem the offer fails to provide adequate premium for ISS' industry leading intellectual property and the significant commercial opportunities the business faces as recognised by recent company updates".
The CIO believes ISS Group's strong balance sheet provides the company with a number of strategic pathways for augmenting shareholder value including possible acquisitions and share buy backs. "ISS' balance sheet is overtly conservative and from a capital management perspective the company has a number of avenues available that would provide significant shareholder value enhancement", he noted. Microequities Asset Management wrote to the ISS board in May proposing that the company instigate a significant share buyback.
The scheme of arrangement requires that shareholders representing at least 75% of all shares issued vote in favor of the scheme. Microequities Asset Management is ISS' second largest shareholder with 9.3% of the company.
ISS' recent 3rdquater financial update denoted a healthy sales pipeline and the year to date total sales are up by 36% versus the previous corresponding period, leaving the company well placed for a record sales result.
About Microequities
Microequities is a specialised asset manager. Established in 2005 as an independent investment research house solely specialised in Microcaps, the company expanded into funds management in early 2009 by launching its flagship Deep Value Microcap Fund. This Fund has provided a +27.79% Compound Annual Return since inception and has a 5 Year 5 Star Morningstar Rating as at 30/09/2015. In 2012, Microequities launched a second open-ended fund, the High Income Value Microcap Fund which has provided a +14.05% Compound Annual Return since inception.
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