Infrastructure India HoldCo, a subsidiary of LSE-listed Infrastructure India Plc, has terminated the investment adviser agreement dated 23 June 2008 with Bloomsbury Asset Management Advisors (BAMA). This follows a notice to terminate the agreement served on BAMA early this month.
The termination was a result of resignation of certain key employees of BAMA last October and the investment advisor failing to replace them with ‘appropriately skilled’ personnel.
In a statement, Infrastructure India Plc had earlier said– and continues to maintain the position– that it does not intend to replace BAMA as investment adviser but instead will rely on Akur Partners LLP, its asset advisor, and its own internal resources.
Infrastructure India Plc, the investment company focusing on Indian infrastructure assets, was amongst the bunch of India-focused companies on LSE/AIM facing shareholder activism.
Early this month, its management won a vote of confidence from the shareholders majority of whom opposed a proposed change in board of the company by one of its key shareholders, Advisor UK in an extraordinary general meeting (EGM).
Advance UK, that owns 10.1% stake in IIP, had last December requisitioned a meeting to remove three out of existing four board of directors(namely Rupert Cottrell, Prodaman Sarwal and Timothy Walker) and replace them with two of its own nominees(John Bourbon and Geoffrey Miller).
It had alleged high overheads with IIP and said the firm should be merged with a large infrastructure company. It also raised questions on management judgement while picking 26% stake in toll road project in central India – Western Madhya Pradesh Infrastructure & Toll Roads Ltd (WMPITRL). Advance UK had apparently also pitched for bringing back BAMA as an investment advisor.