logo
Wise co-founder seeks talks with proxy advisers in US listing row

Wise co-founder seeks talks with proxy advisers in US listing row

Sky News3 days ago
A co-founder of Wise wants the world's most influential corporate voting advisory firms to change their judgements on plans that would cement control of the money-transfer service in the hands of a small band of investors for another decade.
Sky News has learnt that Taavet Hinrikus, who alongside current chief executive Kristo Kaarmann launched the company in 2011, is to press Glass Lewis and Institutional Shareholder Services (ISS) - whose recommendations carry significant sway among institutional investors - to advise Wise's shareholders to oppose plans to extend its dual-class shares until 2036.
The row has arisen amid plans for Wise to shift its primary listing to New York, where dual-class ownership structures are far more common.
The structure was put in place in 2021, when Wise floated in London with a pledge that it would revert to a single class of shares five years after its stock market debut.
Mr Hinrikus's ownership vehicle - Skaala Investments - holds just over 5.1% of Wise's shares, a stake worth roughly £450m at the current stock price.
As a result of its ownership of Class B shares, Skaala also holds roughly 11% of Wise's voting rights.
Speaking exclusively to Sky News, Mr Hinrikus said he was "disappointed that neither Glass Lewis nor ISS have flagged this important governance issue".
"We are keen to discuss this with them and for them to revise their reports ahead of the vote."
Mr Hinrikus has been angered by Wise's refusal to separate the questions of the US listing and the dual-class voting structure into distinct resolutions at its forthcoming general meeting to approve the move.
In a statement issued more widely on Monday, Skaala said "this material governance change was not clearly disclosed to Wise's share owners".
It was unclear which other shareholders in Wise were unhappy at the company's approach.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

River Island on brink of collapsing into administration
River Island on brink of collapsing into administration

South Wales Argus

time5 hours ago

  • South Wales Argus

River Island on brink of collapsing into administration

The fashion chain, which has stories in Newport city centre, Spytty and Cwmbran, also needs to secure further funding later this year in order to preserve its future, according to documents shared with creditors. The London-based company has laid out a major rescue plan which will see it shut 33 stores and pay reduced rents on a further 71 shops. River Island has asked landlords to cut rents for three years and potentially stop payments completely on some sites in a bid to stem losses. River Island is on the brink of collapsing into administration The plan, which will also see it write off parts of its heavy debt pile, will need court approval next month. River Island will need the backing of 75% of the group's creditors, predominantly landlords, at a hearing on August 7. The company said talks with creditors have been positive and it expects to gain approval for the restructuring plan. However, company documents first reported by the Telegraph warned that the company will be 'unable to pay its debts' by the end of the month if the plan is rejected. It indicated that the company will not be able to keep trading if it fails on these payments and would therefore 'be subject to administration or other insolvency proceedings'. The documents also highlighted that the company faces a £10 million 'funding need' in September, which could balloon to £50 million by next year. A River Island spokeswoman said: 'River Island circulated its proposals for a restructuring plan to creditors on June 20. Recommended reading: 'In combination with the company's ongoing transformation strategy, the plan is a proactive measure to place the company on a firm footing. 'We have been having positive conversations with key stakeholders and are confident that we will achieve approval of the plan in the next few weeks.' River Island employs around 5,500 people and was founded in 1948 under the Lewis and Chelsea Girl brand before being renamed in the 1980s.

Woody Johnson completes purchase of Crystal Palace shares
Woody Johnson completes purchase of Crystal Palace shares

The Independent

time5 hours ago

  • The Independent

Woody Johnson completes purchase of Crystal Palace shares

Crystal Palace have confirmed that Woody Johnson's purchase of Eagle Football's shareholding in the club has been completed. American businessman Johnson – who is co-owner of the New York Jets – joins chairman Steve Parish, Josh Harris and David Blitzer as a partner and director of the Eagles, and has also signed the Premier League's Owners' Charter. 'I am honoured and privileged to be joining the ownership group of Crystal Palace Football Club,' Johnson told the Eagles website. 'It is an organisation with a proud history, tradition, and deep roots in English football in South London, which I came to admire during my time as US Ambassador to the United Kingdom. 'Eagles fans have demonstrated extraordinary loyalty, passion, and unwavering dedication and I am excited to meet and get to know them. 'I have great respect for Steve Parish and the leadership he has provided over the years. 'I look forward to working with him and the entire ownership group to build on the club's recent successes and help shape an exciting future for Crystal Palace. 'This is more than an investment – it's a commitment to realising the vision for the club, the community, and the culture around Selhurst Park.' Johnson's arrival at Palace comes with the club in dispute with UEFA over which European competition they will play in next season after winning the FA Cup in May. The Eagles were demoted from the Europa League to the Conference League after falling foul of UEFA's rules governing multi-club ownership, but have submitted an appeal to the Court of Arbitration for Sport. UEFA determined that as of March 1, American businessman John Textor had control or influence in Palace and French club Lyon. Textor said he had agreed to sell his stake in Palace to Johnson, but the move came too late to satisfy UEFA. Parish said: 'At this exciting time for Crystal Palace, we are delighted to be welcoming Woody to the ownership of the football club, and we very much look forward to working alongside him to build on our historic recent success moving forwards.'

Why Tesla shares fell as Musk issues warning
Why Tesla shares fell as Musk issues warning

The Independent

time5 hours ago

  • The Independent

Why Tesla shares fell as Musk issues warning

Tesla shares fell after CEO Elon Musk warned of The electric vehicle maker reported a 12 per cent drop in revenue and a 16 per cent fall in profit, facing increased competition and the impact of Musk's political affiliations. Tesla's financial challenges include the loss of a $7,500 EV tax credit, reduced income from regulatory credits, and hundreds of millions in costs due to tariffs imposed by Donald Trump. Musk indicated a strategic shift towards self-driving taxis, automated driving software, and robotics, rather than focusing primarily on car sales. The company began rolling out its paid robo-taxi service in Austin, Texas, in June, with plans to expand to other cities soon

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store