MCH Group shareholders approve package of measures

The shareholders of the MCH Group clearly approved all the proposals of the Board of Directors at the Extraordinary General Meeting. A total of 848 shareholders, representing 91.2 per cent of the share par value, voted in writing on the proposals of the Board of Directors. (Image: The Art Basel art fair)

With more than 70 percent in favor, they approved the opting-up, which allows Lupa Systems to hold a stake of up to 49 percent, and the two capital increases totaling up to104.5 million Swiss francs. They also elected James Murdoch, Jeffrey Palker and Eleni Lionaki as new members of the Board of Directors by a vote of 78 to 86 percent in favor. The amendments to the Articles of Association concerning the future composition of the Board of Directors and the removal of the restriction on transferability were approved with over 95 percent votes in favor.

On July 31, 2020, LLB Swiss Investment submitted a supplementary motion requesting that the cancellation of the restriction on transferability be implemented without reserving approval of the other agenda items. With the corresponding instruction to the independent proxy in case of additional shareholder proposals, this has been clearly rejected.

Bernd Stadlwieser, CEO of the MCH Group.

"The majority of shareholders have recognized that this overall package is urgently needed to secure the future of the company," commented Chairman of the Board Ulrich Vischer on the outcome of the Extraordinary General Meeting. "We are relieved about the support of the shareholders, who have spoken out in favor of the interests of the company, our stakeholders and also the economic regions of Basel and Zurich."

Bernd Stadlwieser, CEO of the MCH Group, explains: "By approving the proposals of the Board of Directors, the shareholders have expressed their support both for the package of measures to overcome the Corona crisis and for the strategic realignment. The measures must now be implemented without further delay, and the teams must be able to focus 100 percent on them. I would be pleased if the few shareholders who have a different opinion also respect the outcome of the Extraordinary General Meeting and now work with us in the same direction."

"We are delighted that our future co-shareholders have given the green light for Lupa Systems to join MCH Group," said James Murdoch, CEO and founder of Lupa Systems. "We will do our utmost to contribute to the successful turnaround and strategic progress of the company as a long-term anchor investor, as well as on the Board of Directors, and to justify the trust placed in us."

In accordance with the mandate of the Annual General Meeting, the Board of Directors will now initiate the next steps to implement the package of measures. It will work to ensure that the outstanding legal issues are clarified as soon as possible and that the implementation of the measures resolved by the shareholders can be initiated.

MCH Group expects sales to halve in 2020

For the 2020 financial year, the MCH Group is currently anticipating a fall in sales of CHF 230 - 270 million compared with the previous year (previous estimate CHF 130 - 170 million) and an annual loss in the higher double-digit million range. This means a halving of sales compared to the previous year. For 2021, a hesitant recovery and an increase in sales of 70 - 100 million Swiss francs compared to expectations in fiscal 2020 are expected.