13 May 2026
Shareholders’ representatives have told the company’s board its position is “no longer tenable” following recent falls in its stock price.
Allister Webb
Job Title
A major veterinary group has been urged to launch a £100 million share repurchase programme in response to what has been described as its “persistent and substantial undervaluation”.
CVS Group bosses have been warned their current position is “no longer tenable” and a lack of action could trigger external interest in the company.
The company said it was considering the issue and “proactively listening” to feedback from its shareholders.
The message has been delivered by Converium Capital, a Montreal-based investment company which manages funds that own CVS shares.
In a letter to the company’s board, Converium managing partner Michael Rapps argued buying up shares was “the highest-return use of capital” available to “capitalise on its currently languishing share price”.
He continued: “Acting decisively would re-engage investors who have grown skeptical of the board’s stewardship of shareholder capital.
“It is critical to reduce the disconnect between CVS Group’s public valuation and the prices that acquirors have paid for comparable businesses – a gap that, left unaddressed, is likely to invite outside interest in the company.”
The letter said the board had already repurchased £20 million of shares between October 2025 and January of this year at a price 13% higher than current trading levels.
It pointed out that shares in the company, which have risen slightly to 1,150 pence so far today, were now trading at the same level as they had in 2017, including a 20% fall since the Competition and Markets Authority (CMA) published its provisional market remedies last autumn.
Mr Rapps wrote: “A benign outcome to the investigation followed by an uplisting to the Main Market of the London Stock Exchange should have been catalysts for re-rating. They were not.”
Although reports suggest Converium holds only 2% of CVS shares, the letter claimed “clear and broad support” for the buyback proposal based on discussions with other shareholders.
Mr Rapps added: “The board has the responsibility – and the means – to address this persistent and substantial undervaluation.”
It also argued there would be no “trade-off” between the buyback plan and the company’s continuing strategy of practice acquisitions.
A CVS spokesperson said: “The board of CVS continues to engage with all its shareholders and are proactively listening to their feedback, including matters such as capital allocation.
“The board is considering this feedback in the context of its existing capital allocation priorities for the business including investing for organic growth, executing against the company’s acquisition pipeline and returning excess capital where appropriate.”