October 7, 2018 / 10:00 PM / 6 months ago

UPDATE 1-New Zealand's NZX rejects shareholder's demands

(Adds details on strategy and company’s response)

Oct 8 (Reuters) - The board of New Zealand’s NZX Ltd on Monday rejected six demands from investment firm Elevation Capital, a shareholder that holds about 2.3 percent of New Zealand’s stock exchange operator.

One of the key demands was for Elevation to be granted three directors on the NZX board and for the written resignations of three current NZX directors.

Elevation had also demanded that NZX adopt a strategy called '#NZXNOW', the details of which it published bit.ly/2y7L4YJ last week, and appoint a former NZX staff member to work on the implementation of the strategy.

Under its #NZXNOW strategy, Elevation had suggested spinning off non-core assets and shrinking organizational structure of NZX to improve productivity.

“Elevation Capital’s proposed strategy largely borrows from NZX’s already-published strategy. NZX does not believe the areas of difference would create additional value for shareholders,” responded NZX in a statement.

Elevation Capital was not immediately available for comment.

Reporting by Devika Syamnath in Bengaluru; Editing by Peter Cooney and Marguerita Choy

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