Thalassa threatens LSR officers with possible imprisonment #THAL
The struggle for control over Local Shopping REIT has taken an ugly turn today with Thalassa’s Chairman accusing LSR of breaching the Companies Act 2006, “due to its failure to provide shareholder information to which Thalassa is entitled to under the Act, despite numerous requests having been made.”
It should be noted that where a company is found to have breached the relevant provisions of the Act, an offence is committed by every officer of the company who is in default which may result in those individuals being personally imprisoned and/or fined.
This is becoming rather ugly.
Though I have no financial stake in the outcome, I hope for moral reasons that LSR prevails in its efforts to liquidate and return cash to all shareholders. In my opinion, Thlassa’s involvement in LSR has been designed, from the outset, to exploit the rules which require 75% of votes to approve certain corporate actions. These rules have been exploited in an attempt to seize control of LSR, to the likely detriment of other LSR shareholders.
The arguments have been reiterated ad nauseam, and a legal resolution is now needed to break the stalemate. Here’s hoping that the good guys win!
The LSR share price is currently 29.1p, for a market cap of £24 million. It reported in today’s statement that it has cash of 27.9 per share, equating to £23 million in total. According to the Property Sales Update in February, the remaining portfolio comprises six properties. Perhaps there could be a value investing opportunity with this share at some point in the weeks and months ahead?