Severfield plc 6 September 2017

Home » Severfield plc 6 September 2017

Disclaimer: These are excerpts from student assignments conducted as part of a Corporate Finance class. The opinions represented do not necessarily agree with mine. I do not vouch for the quality of the recommendations or the accuracy of the numbers. Follow the recommendations on your own risk.

Next in #student #AGM #voting recommendations is #Severfield #AGM $SFR

#Students applaud directors for recent performance; recommend re-election #BoD #Board #CorpGov

#Students mixed about proposed authorization of #repurchases and #equity #issuance #corpfin

#Repurchases can boost share price in the short-term but perhaps #Severfield should save cash now to deal with Brexit risks

#Students point out that timing for issuing new shares not ideal, valuation seems rather low. Suggested amount seems reasonable to prevent too much dilution. #Corpfin #markettiming #valuation

Proposal Excerpt of Student Recommendations
For Against
(2)Director elections. Excerpts of student recommendations
  • Recent performance satisfactory; directors should stay to guarantee continuity
(3)Authority to repurchase shares
  • Likely to provide short-term boosts to the share price
  • Repurchasing shares increases the concentration of ownership and therefore the value of monitoring by single shareholders
(4)Authority to issue shares
  • Cap proposed seems reasonable to limit share issuance and potential dilution
  • Current market price is not conducive to issue shares; debt financing more favourable
(5)Meeting notice period of 14 days
  • Purely procedural
  • 14 days rather short – 21 days more appropriate for shareholders to make plans

Link to proxy statement:

http://www.severfield.com/wp-content/uploads/2017/01/Severfield-AGM-Notice-2017.pdf