24 Aug 2009 12:00
24th August 2009
Dear Adnams Shareholder
Letter from the Guinness Peat Group (GPG)
You will recently have received yet another letter from GPG continuing their campaign for a change to the Adnams share structure.
We have been delighted with the backing that so many of you have given us. We received numerous expressions of support following GPG's last letter in April. That letter shortly preceded our AGM where all resolutions were supported by approaching 80% of total voting capital. In this context it was strange to read of the support claimed by GPG themselves, but their reporting of the response to their survey of shareholders is very opaque.
The crux of the GPG letter is their continued campaign for a change in the Adnams share structure. Your Board, recognising that this is a matter for agreement amongst shareholders, has tried hard to stay in touch with your views. Our perception remains that an overwhelming majority are happy with the current structure. We would nonetheless urge you to continue to make your views known to us. I am always delighted to receive letters from shareholders and our programme of shareholder open days continues with places still available on 15th September and 30th October.
Some of you will have observed the footnote to GPG's letter stating that the new dealing arrangement for Adnams "A" shares has not eliminated the discount relative to the price of the "B" shares. There is limited trading in both the "A" and "B" shares, but shareholders may be interested to know that the prices of these shares have converged since the new dealing arrangement started. As we noted in our reply to GPG's letter in April, "A" and "B" shares are now trading at similar prices per £ of share capital.
I hope that you received our interim report last week, which I believe showed a very positive result in difficult times. If you would like to make known your point of view, or have any questions or concerns please write to me or email jonathan.adnams@adnams.co.uk, tel. 01502 727204.
Yours sincerely
Jonathan Adnams OBE
Chairman
Coats (COA)