UK's Elementis shareholder calls for immediate strategic review (updated)

Elementis

25/06/2024 13:47

(Adds Elementis' response in paragraph 4, shares in paragraph
5)
       June 25 (Reuters) - Elementis'  ELM.L  shareholder
Gatemore Capital warned it would unite other shareholders and
seek the removal of the British specialty chemicals firm's
chairman via an extraordinary general meeting if it failed to
call for a strategic review immediately.
    "Accelerating the cost-savings program, replacing the
current CEO, and conducting a strategic review — including a
potential disposal of the Talc business — are essential to
improving the company's performance and unlocking shareholder
value," Gatemore, which owns about 4.5 million shares in
Elementis, said in a letter to the company's board on Monday. 
    Gatemore had called for the Elementis board to review its
operations in April and replace the CEO amid falling share
price, following largest shareholder Franklin Mutual Advisers
urging the board to initiate a sales process. 
    "As we noted in our most recent trading update, the business
had a strong start to the year, and we look forward to updating
the market at our interim results on Aug. 1," an Elementis
spokesperson told Reuters in an emailed response. 
        Shares in the London-listed firm were marginally down
0.4% at 1238 GMT. 

 (Reporting by Prerna Bedi in Bengaluru; Editing by Rashmi Aich
and Shailesh Kuber)
 ((Prerna.Bedi@thomsonreuters.com; +91 98052 24616;))