The Board of Shaftesbury PLC, who own a 15 acre portfolio in London’s West End, have been served with legal proceedings issued by companies controlled by Hong Kong property investor Samuel Tak Lee, who is also Shaftesbury’s largest shareholder.
The legal action centres
around the way in which Shaftesbury conducted a fundraising placing, together
with the need for it, in 2017 with Lee alleging it has diluted his
shareholding. The claimants are seeking damages for their alleged losses in the
region of £10.4m.
In their press release the
Board say: “The Board considers the claims to have no merit and intends to
defend the allegations robustly.
“The Board is disappointed
that Mr Lee is continuing with this course of action. In the 18 months
since the Placing, the Board has responded promptly and appropriately to
numerous letters from Mr Lee’s lawyers. The Board has also extended numerous
invitations, prior to and since the Placing, to enter into a dialogue with Mr Lee,
yet on each occasion he has chosen not to respond or declined the opportunity
to engage directly with the Company.”
Press reports say Lee alleges that in conducting the fund raise as they did Shaftesbury’s Board have failed to act in the best interests of all of its shareholders.