The board of ThomasLloyd Energy Impact has hit back against statements made by the trust’s investment manager concerning the RUMS project in India.
Yesterday, 16 August, the investment manager ‘vehemently denied’ claims made by a whistleblower concerning the withholding of material information about the RUMS solar project.
In today’s statement the board made what it called ‘brief but important clarificatory statements.’ It said the whistleblower claims were not false and were supported by ‘verified documentary evidence’.
See also: Whistleblower claims TLEI manager withheld ‘material information’ from board
The board added that the manager’s arguments ignore that the choice facing the company has been to either proceed with a project expected to be significantly value destructive to shareholders, or incur liabilities relating to non-completion of up to $33.5m (£26m).
Describing the exposure to the company as theoretical is misleading, the board added.
The TLEI board further stated that whilst project returns may now be increasing, this is from a very low base and the net present value of the RUMS project remains ‘substantially negative’.
See also: Lipper ETF flows: European equities and financials see largest outflows
They went on to note that although certain information was communicated, there is no evidence that the investment manager can realistically publish the 2022 accounts by 30 September.
The response was concluded by urging TLEI shareholders ‘in the strongest terms’ to vote against the trust’s continuation resolution.
–
PA EVENT: The Watchlist, September 7th | RSVP HERE
Hosted at the Soho Hotel.
This event will explore the latest trends and strategies on Portfolio Advisers’ radar. It will provide an opportunity to gain unique perspectives on up and coming funds.
Sponsors include Goldman Sachs Asset Management, J Sarfra Sarasin, Munich & Co, Oldfield Partners, Premier Miton, Trium Capital and SVM Asset Management.
