Irish Residential Properties REIT (IRES) has said it will recommend the appointment of two board nominees from Vision Capital Corporation in exchange for the 5% shareholder agreeing not to initiate or participate in any further activist campaigns until after the company's 2025 annual general meeting.
The co-operation agreement ends, for now, a year-long campaign by Vision seeking wholesale board changes and a shift in strategy at Ireland's largest private residential landlord.
Vision's proposals to push for the effective sale or privatisation of IRES was defeated at an extraordinary general meeting in February, along with its attempt to remove five of the company's nine directors.
IRES announced in January that it would conduct a strategic review to include the consideration of a potential sale, merger, asset disposals and new strategic initiatives, along with a review of its status as a listed REIT.
"The co-operation agreement provides a constructive framework to address the maximisation of value for shareholders. It enables the board and management to fully focus on the strategic review, the CEO transition and the continued strong operating performance," IRES chairman Hugh Scott-Barrett said.
"We are pleased with the proposed appointments of Richard Nesbitt and Amy Freedman (as directors). We look forward to the outcome of the strategic review and the maximisation of the value inherent in IRES for all shareholders," Vision President Jeff Olin said.
