Wise’s co-founder has called on investors to reject the plan to switch its listing from London to New York.
Taavet Hinrikus is urging a vote against the fintech’s move due to concerns over shareholder rights that are tied up with the proposal.
Wise’s decision to shift its primary listing to the US dealt a body blow to the City when it was announced last month. It will add to the exodus of firms from Britain following the likes of gambling giant Flutter and equipment hire firm Ashtead.
Shareholders are due to vote on the plan next week.
Wise is led by chief executive Kristo Kaarman, who founded the company with fellow Estonian Hinrikus in 2011.
Hinrikus has since left but still owns a 5.1 per cent stake via his firm Skaala Investments.
Clash: Wise co-founder Taavet Hinrikus (pictured)is urging a vote against the fintech’s plan to switch its listing from London to New York
Olivia Rodrigo and Sabrina Carpenter also performed at the British Summer Time Festival in Hyde Park, London.
Some 61 per cent of concert-goers have travelled from across the UK to gigs in London so far this summer, according to Live Nation. And 16 per cent have travelled from abroad.
One in five adults are spending money on concerts this summer, according to Barclays. And Brits are also set to spend £1.06billion during Oasis’s tour, economists at the bank predict.
Skaala criticised the plan in a statement made public yesterday – because investors are also being asked to vote on extending additional voting rights to one group of shareholders.
Under Wise’s dual share structure, those who own ‘class B’ stocks have greater voting power than those with ‘class A’ stocks.
This arrangement had been due to expire in July 2026, but under Wise’s new proposals, it would be extended for ten years.
Skaala said it was ‘deeply troubled’ by Wise’s plans, claiming the class B shares move was ‘buried in the proposal’.
It said the plans would entrench ‘disproportionate power in the hands of a few’, including Kaarman, and that it was ‘entirely inappropriate and unfair’ to combine the listing location and governance changes into a single vote.
‘This approach diminishes shareholder democracy, contradicts good corporate governance and violates Wise’s values,’ a Skaala spokesperson said.
It added that a number of other shareholders are also opposed to the plans, without giving further details.
Skaala said that the extension ‘significantly deviates from accepted governance norms’ and urged shareholders to reject the proposal unless the issues are separated.
Wise said that while it took Hinrikus’s views seriously, the dual-class share structure was essential for the company’s success.
A spokesperson for Wise said shareholders have so far been ‘overwhelmingly in favour’ of the proposal, and cited the backing of advisory groups including ISS, Glass Lewis and PIRC.
Last week, the company suffered a separate setback when it reported lower than expected quarterly profits. The results sent shares plunging and could make prospective investors in New York more cautious ahead of the listings switch.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
InvestEngine
InvestEngine
Account and trading fee-free ETF investing
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
This article was originally published by a www.dailymail.co.uk . Read the Original article here. .