Brunneis Eyes 28.7% Voting Power as Shriro Proposes 81c Share Buy-Backs
Shriro Holdings updates shareholders on proposed buy-backs that could reshape voting power, with major stakes changing hands and key players abstaining from votes.
- Major shareholders D2A and Ariadne have sold entire stakes to Brunneis and others
- Proposed buy-backs priced at 81 cents per share subject to shareholder approval
- Brunneis’ voting power could rise from 19.62% to 28.73% if buy-backs proceed
- Brunneis will abstain from voting on buy-back resolutions and not participate in buy-backs
- CEO Tim Hargreaves confirms he will not participate in the buy-backs
Background on the Buy-Backs
Shriro Holdings Limited (ASX – SHM), a key player in consumer products distribution across Australia, New Zealand, the USA, and China, has provided an important update ahead of its upcoming Annual General Meeting. The company is seeking shareholder approval for three separate share buy-backs, each priced at 81 cents per share. These buy-backs, if executed, would reduce the total number of shares on issue and potentially alter the balance of voting power among major shareholders.
Shifts in Major Shareholdings
Since the initial Notice of Meeting, two significant shareholders, D2A Holdings Pte Ltd and Ariadne Australia Limited, have sold their entire holdings. D2A’s shares have transferred to Brunneis Investments Pty Ltd and Fiona Tudor Brown’s FiBrown Family Trust No 2, collectively known as Brunneis, at a price of 87 cents per share, above the buy-back price. Ariadne Australia has also exited its position completely. This reshuffling sets the stage for a potential increase in Brunneis’ influence within Shriro.
Potential Voting Power Changes
The buy-backs could significantly boost Brunneis’ voting power from the current 19.62% to as high as 28.73%, assuming none of the substantial holders participate in the buy-backs themselves. Other major shareholders, including Greig & Harrison Pty Ltd, Australian Ethical Investment Ltd, and Spheria & Pinnacle, would see their voting power diluted but remain below the 20% threshold. This potential shift raises questions about control dynamics within the company.
Voting Intentions and Board Discretion
Brunneis has indicated it will abstain from voting on the buy-back resolutions and has confirmed it will not participate in the buy-backs. CEO Tim Hargreaves has also confirmed he will not take part in the buy-back programs. The Board retains discretion over whether to proceed with the buy-backs, either sequentially or concurrently, and may decide not to implement any or all of them based on capital management objectives and shareholder interests.
Implications for Shareholders
This update clarifies the potential control impact of the buy-backs and the voting intentions of key shareholders ahead of the AGM. While the buy-backs offer a mechanism for capital return and share consolidation, the abstentions and non-participation from major players introduce uncertainty. Shareholders will be watching closely to see how these resolutions fare at the meeting and what strategic moves the Board ultimately pursues.
Bottom Line?
Shriro’s buy-back resolutions set the stage for a possible power shift, but execution and shareholder votes remain key uncertainties.
Questions in the middle?
- Will the Board proceed with all, some, or none of the proposed buy-backs after the AGM?
- How will other substantial shareholders respond to the buy-back offers and voting resolutions?
- What strategic objectives underpin Brunneis’ decision to abstain and not participate in the buy-backs?
