WH Ireland says shareholders likely to block sale of wealth management arm

(Sharecast News) - WH Ireland said on Wednesday that it looked likely shareholders would block the £1m sale of its wealth management arm at a general meeting on Thursday. Responding to press speculation, it said: "The purpose of the upcoming general meeting is to consider and if thought fit to approve resolutions to authorise the proposed disposal of the business and assets of the group's wealth management business and the associated delisting of the company's ordinary shares from trading on AIM (the resolutions).

"The directors confirm that at this stage the proxy votes filed with the company's registrars indicate that the resolutions will fail but the actual outcome of the upcoming general meeting will not be known until the meeting has been held."

The statement came after Sky News suggested the sale to Oberon Investments was on the brink of collapse as a group of investors including Hugh Osmond moved to block the deal.

Sky said shareholders accounting for more than half of WH Ireland's stock were set to vote against the sale on Thursday.

Sky sources said other buyers had expressed interest in acquiring the division but that WH Ireland's directors had made it clear that they would be unable to share material information about it with rival suitors even after the Oberon deal had been rejected.

WH Ireland announced on 22 September that it had agreed to sell the wealth management business to Oberon. It said at the time that despite implementing further cost-saving measures, the business remained loss-making and would require substantial investment to achieve sustainable profitability.

It said a further capital raise to fund such investment would be "highly dilutive and difficult to execute in current circumstances".

At 1026 BST, WH Ireland shares were up 17.5% at 0.47p.