The largest shareholder of Novavest Real Estate is calling for the removal of three board members due to concerns over the company's stock performance.
Caceis (Switzerland) SA, representing the MV Immoxtra Switzerland Fund, has requested an extraordinary general meeting to address these issues. The shareholder, holding a 15.24 percent stake, is seeking to dismiss board members Thomas Sojak, Stefan Hiestand, and Daniel Ménard, with Sojak also facing removal as board chairman. The proposed candidates to replace the ousted members include Cyrill Schneuwly, Ueli Kehl, and Roland Vögele.
This move comes after a decline in Novavest's share price, which has raised concerns among shareholders. The board of directors has not yet responded to the shareholder's demands but is expected to do so in the future.
The call for board changes is driven by broader concerns about corporate governance and management effectiveness. MV Invest has expressed a loss of confidence in the current leadership, accusing them of prioritizing growth over risk management, particularly regarding debt levels. The recent merger with SenioResidenz AG has also raised concerns about potential capital increases that could dilute existing shareholders' stakes. The proposed amendments to the company's statutes aim to protect shareholders from such dilution. MV Invest believes that new board members with real estate expertise are necessary to restore investor confidence.
The current board members facing removal have experience in various sectors. Thomas Sojak is associated with the Cantonal Hospital of St. Gallen and was the chairman of SenioResidenz AG. Stefan Hiestand has held significant positions at NatWest and Jefferies, while Daniel Ménard is the founder of an architectural firm. The proposed candidates, Cyrill Schneuwly, Ueli Kehl, and Roland Vögele, bring fresh perspectives and extensive industry experience.
The situation at Novavest Real Estate has attracted attention from shareholders and market analysts. The demand for a board overhaul reflects a growing trend among investors who are less tolerant of underperformance and governance issues. The outcome of the extraordinary general meeting called by Caceis will be crucial for the company and may lead to significant changes in its governance structure. The board's response to the shareholder's demands will determine whether they can regain the trust of their shareholders. This power struggle could set a precedent for other real estate firms listed on the SIX Swiss Exchange, emphasizing the importance of responsive and accountable corporate governance.