The founder and former CEO of housebuilder Redrow, Steve Morgan, has increased his stake in the company to almost 30% and is pushing for a shake-up of the board.
In a Stock Exchange announcement this morning, Redrow said that Morgan had bought shares from Toscafund Asset Management to build his holding up from 16.96% to 23.46% through his companies, Bridgmere Securities and Durcan Investments.
Morgan also holds contracts of difference for an additional 6.46%, bringing his interest in the company up to 29.9%.
The owner of Wolverhampton Wanderers Football Club has now proposed that he returns to the board in an ‘executive role’ as well as other proposals which would see ‘a fundamental change in the composition of the board’.
Redrow said: ‘The board remains committed to its high standards of corporate governance and is seeking clarity on these board changes and other critical aspects of Mr Morgan's proposal.
'The board of Redrow will continue to act in the best interests of all shareholders and will reinforce this commitment through its ongoing series of post-results meetings with its leading institutional shareholders.’
Redrow’s shares rose 13% this morning to 152.75p following the announcement.