Entrust concedes loss over Aspen

Entrust Funds Management has all but conceded defeat in its bid to roll the board of developer Aspen Group, after discussions with major institutional shareholders revealed a lack of support for the bid.

Entrust said its discussions revealed there was broad concern among Aspen's shareholders over the large discount to NTA at which Aspen's shares are trading, its Adelaide tax office development and the group's funds management strategy.

But it said it was clear from the discussions that its move to replace four of the five Aspen directors, including co-founder and managing director Gavin Hawkins, was not supported by key institutional shareholders.

"Without the support of these key shareholders, it is unlikely that Entrust can be successful in its push for change," Entrust said in a statement.

"Whilst disappointed, we accept the decision of the majority."

Entrust launched the bid to remove Mr Hawkins and fellow directors Reg Gillard and Terry Budge and reinstate co-founder Angelo Del Borello as managing director in January.

Aspen shareholders were due to vote on the fate of the current board on Thursday.

Aspen Group said in a statement 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."

At close of trade today Aspen shares gained 2 per cent to trade at $0.47.