Weiss fails again in tilt at Cromwell board
Singapore’s ARA Asset Management has failed in its second bid to get its nomination, Gary Weiss, elected to the board of Cromwell Property Group.
The Singaporean investment house, Cromwell’s major investor, had redoubled its efforts to get veteran director Dr Weiss onto the board after failing by just 1.3 per cent at a shareholder meeting last year.
But the gap widened in its latest sally after it called an extraordinary meeting on Monday, when just 41 per cent voted to elect Dr Weiss.
“Cromwell would like to thank security holders for their unprecedented level of engagement,” a Cromwell spokesman said.
“Now that ARA’s attempt to nominate Dr Weiss have been soundly rejected, again, and this time with a significantly increased margin, we would trust that ARA will allow the board and management of Cromwell to get on with the job of executing the company’s proven and successful strategy for the benefit of all security holders”
Cromwell has been at loggerheads with ARA for more than a year. Tensions arose after it became apparent there were conflicts of interest between the Singaporeans and Cromwell as they competed for the same assets in the market.
ARA’s Australian head, David Blight, subsequently resigned from the board and the rift widened when ARA was shut out of a $375 million capital raising by Cromwell, diluting its stake.
A clerical error may have played a role in diminishing the turnout in favour of Dr Weiss, sources said, noting a stronger vote had been expected from Singapore’s Tang Group, which backed his election at the previous meeting.
ARA said it had been told by the Tang Group that it had instructed its custodians to vote in favour of the election of Dr Weiss at Monday’s meeting. ARA said it trying to find out why all the Tang-held stake was not voted.
“ARA is considering its options,” a spokesman said.
