Latest news with #ArnaudAjdler
Yahoo
08-07-2025
- Business
- Yahoo
Dye & Durham stock jumps after shareholder calls for company sale
-- Dye & Durham Ltd (TSX:DND) stock rose 5.5% after major shareholder Plantro Ltd. requisitioned a special meeting to replace three board members and push for a sale of the company. Plantro, which owns approximately 11% of Dye & Durham, nominated three new directors and called for the removal of Board Chair Arnaud Ajdler and two other directors. The shareholder claims the current board has overseen the destruction of nearly $1 billion in shareholder value since December 2024. In its requisition, Plantro argued that remaining public "is no longer a viable option" for Dye & Durham and that "a full sale of the company is the only way to realize a control premium for current shareholders and restore stability in the business." The activist shareholder alleges the current board, influenced by what it calls the "Engine Activist Group" consisting of Engine Capital, EdgePoint Wealth Management, and OneMove Capital, has pursued a strategy of customer price cuts and overspending that has led to declining adjusted EBITDA, reduced cash flow, and rising debt. According to Plantro, the board has rejected multiple acquisition offers, including a $25 per share all-cash offer before the current board took control, Plantro's own $20 per share offer in February 2025, and reportedly an approximately $20 per share offer from Advent International in April 2025. Plantro's nominees include Brian J. Bidulka, former CFO of Research in Motion; David Danziger, a finance leader and corporate director; and Martha Vallance, former Chief Operating Officer of Dye & Durham. If elected, these nominees intend to "immediately pursue a well-governed and thoughtful process to sell the Company without delay to the buyer willing to pay the highest price." Related articles Dye & Durham stock jumps after shareholder calls for company sale TMC shares dip as Iceberg Research rebuts Ives upgrade Jefferies downgrades MP Materials as China eases rare earth restrictions
CTV News
07-07-2025
- Business
- CTV News
Dye & Durham shareholder pushes for sale of company, seeks board changes
The CN Tower and Union Station are pictured in the financial district in Toronto, Friday, Sept. 8, 2023. THE CANADIAN PRESS/Andrew Lahodynskyj TORONTO — A large shareholder of Dye & Durham Ltd. is pushing the company to put itself up for sale and seeking changes to its board of directors. Plantro Ltd., which says it holds about an 11 per cent stake in Dye & Durham, has requested a special meeting of shareholders and nominated three people to the company's board. It is seeking to add Brian Bidulka, David Danziger and Martha Vallance to the board. It wants the removal of board chair Arnaud Ajdler and directors Tracey Keates and Ritu Khanna. Activist investor Engine Capital successfully pushed for a shakeup at the company in December. Engine Capital's slate of nominees was appointed after the previous board resigned together ahead of a shareholder vote. However, Plantro says the Engine activist group and the board have pursued a misguided and haphazard strategy. Dye & Durham shares were up $1.28 at $11.22 in trading on the Toronto Stock Exchange just before noon. This report by The Canadian Press was first published July 7, 2025.
Yahoo
07-07-2025
- Business
- Yahoo
Dye & Durham shareholder pushes for sale of company, seeks board changes
TORONTO — A large shareholder of Dye & Durham Ltd. is pushing the company to put itself up for sale and seeking changes to its board of directors. Plantro Ltd., which says it holds about an 11 per cent stake in Dye & Durham, has requested a special meeting of shareholders and nominated three people to the company's board. It is seeking to add Brian Bidulka, David Danziger and Martha Vallance to the board. It wants the removal of board chair Arnaud Ajdler and directors Tracey Keates and Ritu Khanna. Activist investor Engine Capital successfully pushed for a shakeup at the company in December. Engine Capital's slate of nominees was appointed after the previous board resigned together ahead of a shareholder vote. However, Plantro says the Engine activist group and the board have pursued a misguided and haphazard strategy. Dye & Durham shares were up $1.28 at $11.22 in trading on the Toronto Stock Exchange just before noon. This report by The Canadian Press was first published July 7, 2025. Companies in this story: (TSX:DND) The Canadian Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
06-06-2025
- Business
- Globe and Mail
Engine Capital pushes Sunoco to increase $7.7-billion takeover bid for Parkland
Hedge fund Engine Capital LP is pushing Sunoco LP SUN-N to boost its $7.7-billion friendly takeover bid for gas station owner Parkland Corp. PKI-T On Friday, New York-based Engine Capital said it plans to oppose Sunoco's offer for Parkland at a shareholder vote scheduled for June 24. Engine Capital owns 2.5 per cent of Calgary-based Parkland and has been campaigning for the company's sale. Parkland owns more than 4,000 outlets, including the On the Run convenience store chain, and a Burnaby, B.C., oil refinery supplying fuel to the Lower Mainland. In early May, Sunoco offered $44 per Parkland share in a combination of its own shares and cash in a transaction that would create one of North America's largest gas station and convenience store operators. Andrew Willis: Sunoco's bid for gas station operator Parkland fits Trump's MAGA agenda On Friday, Engine Capital said in a press release the Sunoco offer 'materially undervalues Parkland.' 'To be clear, our opposition to this transaction is directed at its terms – not at Sunoco or its management team,' said Engine Capital managing partner Arnaud Ajdler and partner Brad Favreau. 'We have great respect for both and would welcome the opportunity to become long-term investors in Sunoco if the transaction terms more accurately reflected Parkland's intrinsic value.' Parkland announced the takeover after facing an activist campaign from its largest shareholder, Simpson Oil Ltd., aimed at replacing the board. Engine Capital said: 'The sale process conducted by the board was expedited and flawed.' Simpson Oil owns 19.8 per cent of Parkland and wanted to install new leadership at the company. The company has not commented on Sunoco's bid. In 2023, Sunoco offered to buy Parkland for $18 per share and 0.443 Sunoco units, according to Engine Capital. Parkland's board turned down the offer. The fund manager said the previous bid would now value Parkland at $50.70 per share. 'We believe the 2023 Sunoco proposal – while still undervaluing Parkland – would better reflect the intrinsic value of the company,' Engine Capital said. Parkland and Sunoco structured the takeover with a wrinkle meant to allow the deal to close, even if Engine Capital and Simpson Oil vote against the transaction. The acquisition is structured as a plan of arrangement, requiring approval from 66.6 per cent of votes cast by Parkland shareholders. However, Sunoco negotiated the right to switch the offer into a takeover bid, which only needs support from 50 per cent of all outstanding Parkland shares, at any time up until the June 24 meeting.
CNBC
31-05-2025
- Automotive
- CNBC
Lyft is starting to make some right moves with urging from activist Engine Capital. What's next
Lyft (LYFT) is a multimodal transportation network in the United States and Canada. It offers access to a variety of transportation options through its platform and mobile-based applications. The Lyft Platform provides a marketplace where drivers can be matched with riders via the Lyft App, where it operates as a transportation network company. Transportation options through its platform and mobile-based applications are substantially comprised of its ridesharing marketplace that connects drivers and riders in cities across the United States and in certain cities in Canada, Lyft's network of bikes and scooters, and the Express Drive program, where drivers can enter into short-term rental agreements with its subsidiary, Flexdrive Services, LLC or a third party for vehicles that may be used to provide ridesharing services on the Lyft Platform. It makes the ridesharing marketplace available to organizations through Lyft Business offerings, such as the Concierge and Lyft Pass programs. Stock Market Value: $6.86 billion ($16.26 per share) Percentage Ownership: 0.81% Average Cost: N/A Activist Commentary: Engine Capital is an experienced activist investor led by Managing Partner Arnaud Ajdler, former partner and senior managing director at Crescendo Partners. Engine's history is to send letters and/or nominate directors but settle rather quickly. On March 25, Engine announced a position in Lyft and stated that they are calling for a strategic review, improved capital allocations and the elimination of the company's dual-class share structure. On April 16, Engine nominated two directors for election to the Board at the 2025 annual meeting, but ultimately withdrew those nominations following productive engagement with the company that led to several capital allocation initiatives, including the company committing to significant share repurchases in the coming quarters. Since David Risher took control as CEO of Lyft in 2023, Lyft has made some major improvements, streamlining operations, enhancing platform functionality, and expanding market presence. These have led to notable material enhancements in the company's operational and financial performance. From 2023 to 2024, revenue increased by 31.39%, EBITDA went from a negative$359.1 million to $27.3 million and free cash flow (FCF) increased from negative $248.06 million to $766.27 million, the latter two of which are in the green for the first time since its IPO. Despite these improvements, Lyft's share price decreased by 30% over the same period. There are a few factors that may help explain the company's current undervaluation. First is the industry's dynamics as Lyft operates in a duopoly with Uber in the rideshare market. In the US, Uber holds approximately 75% percent of the market while Lyft holds 24% with the rest controlled by niche areas (i.e. Curb, Alto, and Waymo). The company is in an inherently difficult strategic position due to Uber's dominance — while Lyft is only in the US and Canada, Uber is diversified across most global markets and has expanded into other synergetic areas like food and alcohol delivery. This makes Lyft particularly vulnerable to Uber's decisions regarding pricing and promotions, as management noted during the company's most recent earnings call. The market has sensed this situation, with Lyft's shares underperforming compared to Uber by 37%, 287%, and 210% over the past 1-, 3- and 5-year periods, respectively. Second to this is Lyft's suboptimal capital allocation practices. The company has experienced excessive share dilution. Since 2019, Lyft's shares outstanding have almost doubled. Currently, dilution is primarily caused by the company's stock-based compensation (SBC) practices, which are currently around $330 million annually, 4.9% of Lyft's market cap. Enter Engine, who is calling for a strategic review, improved capital allocation practices and the elimination of the company's dual-class share structure. These proposals are all worth evaluating. First, there are a few reasons why a strategic review, specifically a potential strategic acquisition, makes sense. As has been already discussed, one of, if not the largest challenge Lyft faces is their inability to scale and diversify at the pace of Uber. As the rideshare industry continues to grow and evolve, this will only become increasingly important to Lyft's potential long-term success. It seems like the most effective way to overcome this is to be either sold to or merged with a larger strategic entity that can give Lyft the scale and diversification it needs to compete with Uber. Large players in the food delivery or automotive industry make sense as potential acquirers. For example, Doordash, with a roughly $80 billion market cap, could easily afford Lyft, has synergies to better optimize both platforms, a global presence, and would create more revenue stream options for drivers. On the other hand, automative companies testing the rideshare autonomous vehicle industry like Google (Waymo) and Amazon (Zoox), which is potentially the next technological evolution in the rideshare space, also make sense as acquirers. Given Lyft's depressed valuation (EV to 2026 consensus EBITDA multiple of approximately 6.6x), recent growth, and large number of potential synergies, a large takeout premium is certainly possible here. Secondly, the company clearly needs to improve its capital allocation practices. While Lyft recently announced a $500 million buyback program, this is not even sufficient to counter the dilution over the next two years due to current SBC practices. With $2 billion of cash (approximately $700 million of net cash) and the company dramatically increasing their FCF, it appears that Lyft has the ability to much more aggressively repurchase shares to do more than just counter SBC dilution. Lastly, as a corporate governance investor, Engine will propose eliminating the dual-class structure. Originally set up to give control to the founders, this structure now seems unnecessary since co-founders John Zimmer and Logan Green are no longer involved in day-to-day operations. These preferred shares carry 20 votes per share, which give them 30.8% of the total voting power while owning only approximately 2.3% of outstanding shares. Eliminating the dual-class share structure makes complete sense, is the right thing to do and would be supported by the vast majority of shareholders. However, there is virtually no way that Zimmer and Green will voluntarily give up this control position. As an experienced activist investor Ajdler knows that, but also as an experienced activist investor, he has to try. But at the very least, the Company can refine the board to reflect the changes over the past six years since its IPO – seven of the ten current directors have no public company experience other than Lyft - the Board has a lean towards directors with experience in startup companies or early-stage investments. While this background may have once been valuable, that is not where Lyft is as a Company anymore. A refreshment of these directors for people with public market, capital allocation and capital markets expertise, would better position the Company for what it is today. After launching a proxy fight for two board seats, this campaign came to a head when Engine withdrew their director nominations on May 8. This withdrawal came following the company's public announcement to increase its share repurchase authorization to $750 million and commit to utilize $200 million of such authorization over the next three months and $500 million within the next 12 months.
