Elementis shareholder Gatemore calls for strategic review

(Sharecast News) - Elementis shareholder Gatemore Capital Management said on Tuesday that if the company does not launch a strategic review, accelerate its cost-savings programme and replace its chief executive, it may seek to oust the chairman. In its second public letter to Elementis, Gatemore also said the company should consider a potential disposal of the talc business. All these measures, it said, are "essential" to improving performance and unlocking shareholder value.

"The time is now for the board to take immediate and decisive actions to address these governance concerns and realign the company's strategy with the interests of its shareholders. We have engaged with many of the largest active shareholders of Elementis and believe there is unity on all these issues," it said.

"We strongly urge you and the board to take prompt and decisive action. Failing this, we may be compelled to unite the shareholders and pursue the replacement of the chairman through an Extraordinary General Meeting to drive the necessary change within Elementis."

Gatemore holds around 4.5 million shares in Elementis.