logo
Wise co-founder opposes US listing proposal over voting rights changes

Wise co-founder opposes US listing proposal over voting rights changes

CNA6 days ago
One of the founders of money transfer company Wise has urged shareholders to reject plans to move the company to the U.S. because the plans also include changes to the shareholder structure which he said were buried in the proposal.
Founded in 2011 by two Estonians, Taavet Hinrikus and Kristo Kaarman, London-listed Wise said in June that it planned to move its primary listing to New York. Shareholders are due to vote on the plans on July 28.
Hinrikus, who has left the company but still owns a 5.1 per cent stake via his company Skaala Investments, criticised Wise's plans in a statement made public on Monday, saying they also included extending voting rights for one group of shareholders.
The plans would entrench "disproportionate power in the hands of a few", including Wise's CEO Kaarman, Skaala said in its statement which was originally sent to Wise and included in a stock exchange filing by Wise on Monday.
Wise has a dual share structure, in which shareholders with "Class B" stocks have more voting power than those with "Class A" stocks. Under Wise's new proposals, these extra rights for "Class B" shareholders would be extended for 10 years - rather than ending in July 2026 as originally planned.
Wise said in its response that while it takes Hinrikus's views seriously, the dual-class share structure is essential for the company's success.
In its proposal documents, Wise said that dual-class share structures "support management's ability to focus and execute on their long-term and often founder-led vision".
Skaala said that the extension "significantly deviates from accepted governance norms" and urged shareholders to reject the proposal.
The dispute could complicate Wise's U.S. plans, which were intended to give it access to the world's largest capital markets while maintaining a secondary listing in London.
Skaala said it was "entirely inappropriate and unfair" to combine the listing location and governance changes into a single vote.
"This approach diminishes shareholder democracy, contradicts good corporate governance and violates Wise's values," it said.
Skaala said that a number of other shareholders are also opposed to the plans, without giving further details.
A spokesperson for Wise said on Monday that shareholders have so far been "overwhelmingly in favour" of the proposal and cited the backing of proxy advisors including ISS, Glass Lewis and PIRC.
Wise said that the process was fair, and that multiple corporate changes can be voted for under one proposal.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

KKR in talks to buy S'pore-based ST Telemedia Global Data Centres in deal valued at US$5b: Sources
KKR in talks to buy S'pore-based ST Telemedia Global Data Centres in deal valued at US$5b: Sources

Straits Times

timea day ago

  • Straits Times

KKR in talks to buy S'pore-based ST Telemedia Global Data Centres in deal valued at US$5b: Sources

KKR is already a backer in the closely held data centre company known as STT GDC with a 14.1 per cent stake. KKR & Co. is in talks to buy ST Telemedia Global Data Centres in a deal that could value the Asian digital infrastructure provider at more than US$5 billion (S$6.4 bliion), according to people familiar with the matter. The US investment firm and ST Telemedia could reach a deal in the coming weeks, the people said. KKR is already a backer in the closely held data centre company known as STT GDC with a 14.1 per cent stake. At a more than US$5 billion valuation, the deal could be among the largest for KKR in 2025, according to data compiled by Bloomberg. Discussions are advanced but could still be delayed or even fall apart, the people said, asking not to be identified as the information is private. KKR and STT GDC declined to comment. Based in Singapore, STT GDC is one of Asia's largest data centre operators with more than 100 data centres across 20 major markets including India, South Korea, Japan and Malaysia. It also has presence beyond Asia in countries such as the UK, Italy and Germany. The company provides services such as colocation, connectivity, and support services. A consortium of KKR and Singapore Telecommunications in 2024 invested $1.75 billion for a minority stake in STT GDC after a competitive process. KKR in 2025 has pulled out the same playbook it deployed during the pandemic by investing through the market turbulence triggered by President Donald Trump's trade war. In April, it won a hotly-contested auction for post-trade services firm OSTTRA for an enterprise value of more than US$3 billion and announced an acquisition of Karo Healthcare for more than €2.5 billion (S$3.76 billion) including debt. More recently, KKR agreed to buy London-listed Spectris, a maker of precision testing equipment and software, for about £4.1 billion (S$7.05 billion). BLOOMBERG

HSBC cuts equities team in Germany as CEO Georges Elhedery continues revamp
HSBC cuts equities team in Germany as CEO Georges Elhedery continues revamp

Business Times

time2 days ago

  • Business Times

HSBC cuts equities team in Germany as CEO Georges Elhedery continues revamp

[LONDON] HSBC Holdings is planning to let go of several staff in its Germany-based equities team as it continues to pare the investment banking division outside Asia and the Middle East. The London-headquartered lender is preparing to cut equities sales and trading jobs in the Dusseldorf office, according to sources familiar with the matter. The move is part of chief executive officer Georges Elhedery's effort to revamp the investment bank, the sources said, asking not to be identified discussing private information. Europe's largest financial institution has already culled dozens of analysts in its investment bank in the last couple of months and it has shut down its US, UK and European equity capital markets and M&A units. 'Equities sales and trading supports the growth of our Prime and Wealth businesses, facilitates equities distribution to the market and supports our global clients investing in equities in both developed markets and emerging markets,' an HSBC spokesperson said in response to questions about the cuts at the German unit. Since taking over as CEO last September, Elhedery has instituted a widespread overhaul of the bank that has involved creating four new divisions under what he has called his 'simplification' plan. He has also combined HSBC's commercial and investment banking units, while making operations in the UK and Hong Kong standalone businesses. BLOOMBERG

HSBC cuts equities team in Germany as CEO Elhedery continues revamp
HSBC cuts equities team in Germany as CEO Elhedery continues revamp

Business Times

time2 days ago

  • Business Times

HSBC cuts equities team in Germany as CEO Elhedery continues revamp

[LONDON] HSBC Holdings is planning to let go of several staff in its Germany-based equities team as it continues to pare the investment banking division outside Asia and the Middle East. The London-headquartered lender is preparing to cut equities sales and trading jobs in the Dusseldorf office, according to sources familiar with the matter. The move is part of chief executive officer Georges Elhedery's effort to revamp the investment bank, the sources said, asking not to be identified discussing private information. Europe's largest financial institution has already culled dozens of analysts in its investment bank in the last couple of months and it has shut down its US, UK and European equity capital markets and M&A units. 'Equities sales and trading supports the growth of our Prime and Wealth businesses, facilitates equities distribution to the market and supports our global clients investing in equities in both developed markets and emerging markets,' an HSBC spokesperson said in response to questions about the cuts at the German unit. Since taking over as CEO last September, Elhedery has instituted a widespread overhaul of the bank that has involved creating four new divisions under what he has called his 'simplification' plan. He has also combined HSBC's commercial and investment banking units, while making operations in the UK and Hong Kong standalone businesses. BLOOMBERG

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