Activist investor Laxey Partners is attempting to block the reverse takeover of an AIM-listed UK property company that invests in Indian regeneration projects.
Laxey has urged other shareholders in Hirco to vote against a proposal next week that would see Hirco Developments, a private firm owned by the Indian Hiranandani family, merge with Hirco through the issue of new shares in the AIM-listed company.
Hirco invests in township projects in Panvel and Chennai that are developed by Hirco Developments. The Hirco board told the Stock Exchange that the merger of the two companies would simplify the organisation and ownership of the projects. It said this would help to narrow the 89% discount to net asset value at which Hirco’s shares trade. On Wednesday, shares in the company were trading at 75p.
