MTN Group has asked the IHS board to call an extraordinary general meeting of its shareholders.
According to the firm, this is to ensure IHS considers its proposal, and any other shareholder proposals relating to governance.
It stated that it is also currently evaluating all its options and intends to enforce a Shareholders’ Agreement and Articles with IHS.
Earlier this month, a Bloomberg report stated that major stakeholders, Wendel SE and MTN Group Limited, told IHS during an annual general meeting that shareholders with at least a 10 per cent stake should have the power to nominate board members.
However, the report quoted IHS as saying, “The proposals requested to be put forward were not in the best interests of the company as a whole or our collective shareholder base.”
In a statement, MTN noted that the governance proposal it submitted prior to IHS’ 2023 AGM, was not considered and is asking for a new general meeting for the consideration of its proposal.
It said, “The proposal was intended to protect important shareholder rights and to better align IHS’ corporate governance with other publicly traded companies.
“Under the Shareholders’ Agreement and its articles (Articles), IHS was required to include the proposal on the agenda for the AGM, notify all other shareholders of the proposal, and allow shareholders to vote on the proposal at the AGM.
“However, MTN strongly believes that IHS has willfully breached the Shareholders’ Agreement and Articles by failing to notify its shareholders of the proposal and denying its shareholders the opportunity to vote on it at the AGM.”
However, a news report on news24.com, stated that IHS had determined that the recent shareholder proposal from MTN was “not in the best interests of IHS Towers as a whole or our collective shareholder base.”
In the report, IHS said, “MTN does not have the right to call an extraordinary general meeting under our articles or shareholder agreement. IHS Towers remains focused on increasing shareholder value and will continue to engage with MTN as we do with all our shareholders.”
