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Silverwood Brands PLC on Monday said Lush Cosmetics Ltd and Cosmetic Warriors Ltd refused to record the transfer of Silverwood shares as part of its £216.8 million acquisition for the two companies, referred together as ’Lush’.
Silverwood is a London-based investing company targeting food, organic food, wellness, lifestyle and leisure sectors, while Lush is a manufacturer and seller of handmade skincare goods and cosmetic products, operating retail outlets in 48 countries and manufacturing in six countries.
VSA Capital Group PLC on Monday also said it agreed with Silverwood Brands PLC’s stance that the two cosmetic product retailers, also referred together to as ’Lush’ by VSA Capital, and their actions have no merit.
VSA Capital is a investing banking and broking firm with offices in London and Shanghai. It currently serves as Silverwood’s Aquis corporate advisors, having advised on the Aquis regulatory issues and discussions relating to the acquisition transaction. It holds 0.9% of Silverwood’s total share capital.
It said it is ‘equally disappointed that a well-known ethical brand is refusing to record the transfer of shares in line with their articles of association’.
Together with its legal advisors, Silverwood will engage Lush and its solicitors to resolve the current situation, VSA Capital said.
‘Lush has been a great British success story. Silverwood acquired the Lush shares because of a strong belief in an even greater future potential to increase its value and therefore the value of the company’s stake in Lush,’ said Silverwood in a statement.
‘The company intends to be a strong critical friend, advocating on behalf of all stakeholders in Lush including minority shareholders and employees through the Employee Benefit Trust, to stay on the right strategic track, avoiding the pitfalls that other previously great British success stories have fallen into in recent years.
‘While Silverwood is disappointed with the message given by Lush to date, and its reasons and motives must be explained, the company fully intends to continue extending its offer of engaging constructively.
VSA Capital said it remains positive about its full-year results, since last updating the market with its interim results announced in mid-December.
Shares in VSA Capital were flat at 11.5 pence each on AQSE in London on Monday morning, having last traded at 11.0p on February 12, while shares in Silverwood were also flat at 95.0p each, having last traded at 90.1p on February 2.
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