Shareholders in battle for control of Promethean

A BATTLE for control has broken out at the listed private equity vehicle founded by former Bank of Scotland chief executive Sir Peter Burt and his son Michael.

Promethean, which raised 50 million when it listed on Aim five years ago to take stakes in underperforming companies, is currently in the process of being wound up and its investments realised.

But yesterday the company revealed that shareholder Laminvest, understood to be connected to a former director of Promethean, Mike Pappas, who resigned two years ago, and investment firm Knox D'Arcy are calling for an extraordinary general meeting (EGM) to install their own nominated directors on the board of the London-based company.

While the motives behind the move are not clear, it is thought likely 22 per cent shareholder Laminvest is unhappy with the progress being made on the winding-up of the company's investment portfolio.

It originally proposed a resolution for the removal of chairman Burt senior and non-executive director Martin Negre, to be replaced by Andrew Ashworth and Robin James.

But after shareholders owning more than 57 per cent of Promethean indicated to the board they would vote against the resolution, the rebel shareholder agreed to withdraw it but has since proposed a second one, instead calling for the removal of Negre and another non-executive, Elizabeth Tansell.

Promethean's board said they still have "substantive shareholder support" and that the calling for the EGM will only incur unnecessary costs and "distract the board and the manager from the important task of managing the realisation programme".

The board added that unless the EGM request is withdrawn, the circular to shareholders convening it "will include additional background information on the concert parties who are attempting to secure a majority on the board".

In June, Promethean said it was making "good progress" towards completing an orderly wind-up and that the fee paid to the investment manager, Promethean Investments, is likely to be below the agreed maximum of 875,000.

Yesterday it said it was continuing to work with one of its investments, Aim-quoted car dealer Cambria Automobiles, to try and secure consent to enable the company to sell all or part of its 33.3 per cent stake in the company. Both Burts are non-executive directors at Cambria.

Among the company's other investments is a stake in Aim-quoted marketing services group Media Square.

Bank of Scotland's vehicle Uberior Investments was among the heavyweight shareholders who had backed Promethean's launch with Dundee-based Alliance Trust also taking a sizeable stake. Shares in Promethean closed unchanged at 36.25p, valuing the company at 16.4m. Shares in Cambria plunged by 21 per cent, or 6.5p, to close at 24p.