Competent Party Achieves Triumph in Struggle Against Partner Hinrikus in Contest
In a tense development, fintech company Wise is embroiled in a public dispute with one of its significant shareholders, Skaala, led by co-founder Taavet Hinrikus. The dispute centres around Wise's proposal to shift its primary stock listing to the US, combined with a 10-year extension of its dual-class voting rights. Skaala strongly opposes this bundled proposal, arguing for separate votes to preserve shareholder democracy.
The extraordinary general meeting to vote on the resolutions is scheduled for Monday. If the court declines to sanction the proposals, the dual listing could be materially delayed by months, and significant cost and risk would be introduced unnecessarily.
The heart of the controversy lies in Skaala's alternative schemes of arrangement, offering shareholders the choice to approve the US dual-listing with or without the 10-year extension of the dual-class voting rights. Wise has rejected these alternatives without providing a clear explanation.
Skaala has accused Wise of misleading its own investors and has questioned why a correction had not been issued through formal stock market channels. They also criticised Wise's chairman, David Wells, for making legally and commercially unfounded claims.
Wise, however, defends its conduct, stating it initially received a favourable report supporting its proposals but was unaware of a subsequent contrary report until late July. The company has asked the research firm to update its guidance.
The dual-class voting extension is linked to the vote on the US listing. To carry the resolutions, 75% of each A and B class shareholders by value and a simple majority of the number of shareholders who vote are needed. Skaala believes the court may decline to sanction the proposals due to procedural, fairness, and transparency issues.
Despite the escalating dispute, Wise continues to be led by co-founder Kristo Käärmann, who supports the voting structure extension, while Hinrikus has stepped back from company management but remains a significant investor and vocal critic of the plan.
As of late July 2025, the developments show an increasingly public and legal-phase dispute between Wise and Skaala over power distribution within the company. The resolution likely depends on the High Court’s review scheduled for next year.
In the meantime, Wise, a £10bn payments company, is planning to shift its primary stock market listing to the US. Shares in the company, which has a market capitalization of £10.5bn, have risen by more than 40% in the last year. However, Skaala is expected to win "very limited" support from investors due to the short timeframe.
The outcome of this dispute could have far-reaching implications for Wise's governance structure and its future plans for a US listing. The court's decision and the shareholders' votes will be closely watched by investors and industry observers alike.
- The ongoing legal dispute between Wise and its shareholder, Skaala, could potentially delay the sanctions for Wise's proposed shift to a US primary stock listing due to the court's ruling on the proposed 10-year extension of dual-class voting rights.
- The war of words between Wise and Skaala over the company's governance structure and future plans for a US listing has raised concerns in the finance and investing community, as the outcome could have significant implications for the business and its shareholders.
