The fallout from Entrust Funds Management's failed bid to oust the board of property developer Aspen Group has continued, with director Seng Fai Chan resigning today.
Entrust conceded defeat yesterday, after its discussions with major shareholders revealed a lack of support to replace the incumbent board, sans Mr Chan.
Mr Chan distanced himself from Aspen directors Gavin Hawkins, Reg Gillard and Terry Budge early last month, after they said it was not in the company's best interests for dumped co-founder Angelo Del Borello to return.
Aspen originally said the entire incumbent board held this view but later issued a statement saying Mr Chan did not agree.
Entrust was seeking to remove Messrs Hawkins, Gillard and Budge, and replace them with Mr Del Borello, Entrust Funds Management managing director David Franklyn and funds management industry veteran Richard Colless.
Entrust said it launched the action over concerns that Aspen was trading at a 33 per cent discount to net asset backing, which it said was the deepest discount of any S&P/ASX 300 real estate investment trust that only invests in Australia.
Aspen Group said in a statement yesterday that it would not comment on the votes that it had already received, except that it was pleased with the support it had received from investors.
"Aspen notes, however, it's disappointment in the inflammatory and uninformed comments that continue to be made by Entrust," the statement said.
"Despite the concession by Entrust that the requisitioning parties do not have the support of Aspen's investor base in relation to resolutions to be voted on at the EGM, Aspen intends to proceed with the meeting as planned, and will release the respective results at its conclusion."
The extraordinary general meeting is scheduled for tomorrow.
