Southend airport owner Stobart’s broker Cenkos has resigned following a Woodford-backed boardroom row
Stobart, the owner of London Southend Airport, has seen its broker resign this morning amid a heated boardroom battle.
Broker Cenkos has stepped down as it is understood to have a long-standing relationship with Andrew Tinkler, the former boss of Stobart who is attempting to oust chairman Iain Ferguson.
City A.M. understands that Cenkos did not feel able to independently carry out its duties with the boardroom row continuing, and also did not want to jeopardise its relationship with Tinkler.
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FTSE 250-listed Stobart’s shares sank more than four per cent in early trading.
The battle began on the 25 May, when Stobart announced that Tinkler – who remains an executive director – would be voting against Ferguson’s reappointment at the company’s June AGM.
All of the other directors declared their support for Ferguson – as did Invesco, Stobart’s largest shareholder with 24.8 per cent of the company.
However Tinkler and two other shareholders, one of which is understood to be Neil Woodford’s firm Woodford Investment Management, are backing Tinkler.
Stobart yesterday hit back at its former chief executive Tinkler, saying that the board “has been forced to address a number of challenges posed by Mr Tinkler in the recent past”.
These included his demands for an advantageous buyback for his part of the business, an £8m bonus in shares, his proposed buyout of the company when it was trading lower and having to settle “contractual issues” from when Tinkler was CEO.
The firm said it had “sought to balance the benefits of harnessing Mr Tinkler’s entrepreneurial talent” while maintaining strong corporate governance, but considered no further negotiation was possible.
Stobart has urged investors to vote in support of Ferguson, saying that his corporate governance reform has helped to provide stronger shareholder returns.
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