TSX- and NYSE-listed Hudbay Minerals said on Wednesday that its largest shareholder, Letko, Brosseau & Associates, had confirmed that it would vote for the company's director nominees at the upcoming shareholders meeting.
Letko, Brosseau & Associates exercises investment control or direction over about 35 112 398 shares, or 13.4%, of Hudbay’s issued and outstanding shares.
The support comes as Waterton Global Resource Management is lobbying shareholders to replace 80% of Hudbay’s board, including its CEO and chairperson. The dissident shareholders have put forward a slate of eight directors they want voted in at the May 7 meeting.
Earlier in the week, Waterton started legal proceedings against Hudbay in the Ontario Superior Court, alleging that the company’s management information circular in respect of its scheduled special shareholders meeting contains misrepresentations and seeks to constrain its ability to solicit proxies.
Hudbay dismissed the litigation as “frivolous”.