Given a significantly undervalued share price, client’s board kicked off a strategic review process to enhance shareholder value. An activist shareholder had taken a position in the company and had requisitioned a meeting of shareholders to force a vote to replace several board members. The board struck a special committee of independent directors, charged with considering how best to maximize value and recognize the company’s current value and future prospects.
The two main options available to enhance value were to engage in a strategic sale at a strong premium to the prevailing share price, or to defend against the activist shareholder and convince the market and shareholder base that the best path to value maximization was an enhanced “go-it-alone” strategy.
• Advised the board and the special committee on the strategic alternatives available, and the most effective path to maximizing value
• Ran a process resulting in a value maximizing sale of the company to a strategic cross-border buyer for cash
• Buyout offer represented a premium of 65% to the company’s closing share price the day before the announcement, and a premium of 96% to the unaffected price prior to the publicly disclosed activist shareholder requisition
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