Business
Letter to icapital.biz Berhad
Letter to icapital.biz Berhad.
About this update from City Of London Investment Group Plc
[{"type":"text","content":"\n \nRNS Number : 9378J City of London Investment Group PLC 15 September 2016 \n\nCITY OF LONDON INVESTMENT GROUP PLC\n \nTEXT OF LETTER TO ICAPITAL.BIZ BERHAD\n \n(LONDON, 15 September, 2016) - City of London Investment Management has sent a letter (published in full below) to the board of icapital.biz Berhad (ICAP:MK) explaining its intention to oppose the re-election of directors at ICAP's forthcoming AGM.\n \nBackground\nCity of London Investment Group is an emerging markets fund manager which specialises in investing in closed-end investment companies. The firm is authorised and regulated by the Financial Conduct Authority and registered as an Investment Advisor with the Securities and Exchange Commission.\n \n \nFor further information, please contact:\n \nSimon Westlake\nCity of London Investment Group \n020 7711 1552\[email protected] \n \n \nFull text of letter\n \n \nThe Directors\nicapital.biz Berhad\nUnit 30-01, Level 30, Tower A \nVertical Business Suite \nAvenue 3, Bangsar South\nNo. 8, Jalan Kerinchi\n59200 Kuala Lumpur\nMalaysia\n \n \n15th September 2016\n \n \nDear Directors,\n \nTwelfth Annual General Meeting of icapital.biz Berhad (ICAP)\n \nClients of City of London Investment Management Limited (CLIM) own 21,970,900 ICAP shares (15.7%). There has been no action in response to any of the points that were raised in our letter to you dated 26th August 2015, which set out our concerns regarding ICAP's poor performance and persistently wide discount to NAV. CLIM therefore confirms that it intends to continue voting against the re-election of incumbent directors. Accordingly, CLIM intends to vote against the re-election of Madam Leong So Seh at ICAP's 12th AGM on Saturday, 24th September 2016.\n \n \n· Performance\nWe reiterate our call for performance comparisons in shareholder communications to be made on a total return basis, which is universally accepted in the investment industry as best practice. \n \nThe total return in the five years to end May 2016 for the FTSE Bursa Malaysia Index has been 23.1% cumulative (equivalent to 4.2% pa). In comparison ICAP's NAV return has been 13.0% cumulative (2.5% pa). The share price return over this period has been ev...