Li & Fung: Eyes on Silchester as proxy advisors ISS and Glass Lewis back deal

Proxy advisers Institutional Shareholder Services (ISS) and Glass Lewis are both recommending shareholders to vote in favor of the HKD 1.25 per share take-private offer for Li & Fung [HKG:0494]. But the stance of Silchester International Investors, a 10.9% shareholder in Li & Fung with a blocking stake, is the key to the deal completion. 

When asked how the UK investment firm treats proxy firms’ recommendations, a spokesperson at Silchester International Investors said the asset manager makes its own voting decisions and does not rely on the suggestions of proxy advisors.

But, in a policy document on its website, Silchester says its voting is “informed” by advice from external firms, including ISS and Glass Lewis. 

Silchester had separately indicated in an earlier statement that it is willing to sell its shares close to the offer price.

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-by Sirui Shao in Hong Kong