October 20, 2009 / 11:24 AM / 10 years ago

UPDATE 2-JSM Indochina shareholder wants directors replaced

* Passport Capital says wants JSM’s CEO, CFO removed

* JSM shares up 1.6 pct (Adds details)

Oct 20 (Reuters) - JSM Indochina Ltd’s JSM.L shareholder, San Francisco-based investment firm Passport Capital LLC, said it had called for a meeting of the property firm’s shareholders as it seeks to replace the company’s directors with its nominees.

Passport, which owns a 13.4 percent stake in JSM, said it was looking to remove JSM’s Chief Executive Craig Jones, Chief Financial Officer Rowell Tan and Director Michael Tanner.

Passport said it wanted to appoint Scott Verges, Paul Kaju and John Duggan to JSM’s board and nominate Verges as the new chairman.

Passport said its move followed disappointing response to its efforts to get information from JSM about “serious corporate governance failings and the lack of transparency on matters of concern to all shareholders”.

“We believe that the company (JSM) needs a reinvigorated board to examine its investment strategy,” John Burbank, chief investment officer of Passport, said in a statement.

Passport’s call to replace JSM’s directors comes at a time when there is a growing trend of shareholder activism in the real estate sector.

Last month, Hallmark Investors Ltd made a tender offer to buy a 19.1 percent stake in South-eastern Europe resorts developer Dolphin Capital Investors Ltd (DOLC.L).

Hallmark’s directors include Dolphin’s Chief Executive Miltos Kambourides and co-founder Pierre Charalambides. [ID:nBNG492149]

Last week, Terra Investments Ltd, a 35.7 percent shareholder of Rugby Estates Investment Trust Plc RUES.L, said it would make a mandatory offer for the Rugby shares it did not already own, at a price of 41 pence per share.

Subsequently, Rugby had said that the Terra offer undervalued the company.

JSM shares were up 1.6 percent at 65 cents at 1303 GMT on the London Stock Exchange. (Reporting by Kumar Alagappan in Bangalore; Editing by Himani Sarkar)

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