Photo-Me shareholder considers EGM withdrawal

Tensions over the possible break-up of photo booth firm Photo-Me eased today after a rebel shareholder said it may drop its call for a special vote.

Principle Capital will not enforce its demand for an extraordinary general meeting if Photo-Me commits to an announcement by August 15 on whether it intends to press ahead with the disposal of its vending division, which comprises photo-booths and digital media kiosks.

The investment group, owner of 10% of Photo-Me, has called for an end to the sale process, amid frustration at the lack of progress shown by the firm.

It has already been successful in pressing Photo-Me into a boardroom overhaul, with four directors announcing their resignation this week in order to improve the independence and size of the company’s board.

Photo-Me also revealed “strong interest” in the vending business, given its prospects and leading positions in key markets.

Principle said today it wanted an August deadline as it remained concerned that the disposal process could continue for a “further extended period, only to present a transaction which is rejected by shareholders”.

It added: “In order to allow the board to make an informed decision and avoid the risk that shareholders ultimately reject any transaction that is proposed, we would encourage all shareholders to communicate their views on the valuation of the vending division to the independent directors.”