Engine Capital Nominates Two Highly Qualified Candidates for Election to C&C Group’s Board of Directors
Engine Capital LP, a significant shareholder of C&C Group Plc, has nominated two candidates for election to the company's Board of Directors at the 2024 Annual General Meeting. This decision comes after years of underperformance by C&C Group, including succession missteps, strategic mistakes, and financial disappointments. Engine Capital cites the company's consistent underperformance compared to the FTSE 250 Index and peer group averages across various timeframes.
The nominated candidates are Ryan Dubin, an investment professional with experience in finance and M&A, and Alan Hibben, a corporate director with expertise in capital allocation and corporate governance. Engine Capital believes these additions will bring necessary financial skills and a shareholder mindset to the board, addressing concerns about the current directors' lack of urgency and minimal share ownership.
Engine Capital LP, un azionista significativo di C&C Group Plc, ha nominato due candidati per l'elezione al Consiglio di Amministrazione della società durante l'Assemblea Generale Annuale del 2024. Questa decisione arriva dopo anni di scarsa performance da parte di C&C Group, inclusi errori di successione, scelte strategiche sbagliate e delusioni finanziarie. Engine Capital cita la costante sottoperformance dell'azienda rispetto all'FTSE 250 Index e alle medie del gruppo di riferimento in vari periodi di tempo.
I candidati nominati sono Ryan Dubin, un professionista degli investimenti con esperienza in finanza e M&A, e Alan Hibben, un direttore aziendale con competenze in allocazione di capitale e governance aziendale. Engine Capital ritiene che queste aggiunte porteranno competenze finanziarie necessarie e una mentalità orientata agli azionisti nel consiglio, affrontando preoccupazioni riguardo alla mancanza di urgenza e al minimo possesso di azioni da parte degli attuali direttori.
Engine Capital LP, un accionista importante de C&C Group Plc, ha nominado a dos candidatos para la elección en la Junta Directiva de la compañía en la Junta General Anual de 2024. Esta decisión llega tras años de bajo rendimiento de C&C Group, incluyendo errores en la sucesión, decisiones estratégicas equivocadas y decepciones financieras. Engine Capital cita el constante bajo rendimiento de la empresa en comparación con el índice FTSE 250 y los promedios del grupo de pares en varios períodos de tiempo.
Los candidatos nominados son Ryan Dubin, un profesional de inversiones con experiencia en finanzas y fusiones y adquisiciones, y Alan Hibben, un director corporativo con conocimientos en asignación de capital y gobernanza corporativa. Engine Capital cree que estas incorporaciones aportarán las habilidades financieras necesarias y una mentalidad de accionista a la junta, abordando las preocupaciones sobre la falta de urgencia y la mínima propiedad de acciones por parte de los directores actuales.
엔진 캐피탈 LP는 C&C Group Plc의 주요 주주로서 2024년 정기 주주총회에서 회사 이사회의 선거를 위해 두 후보를 추천했습니다. 이번 결정은 C&C Group의 저조한 실적가 이어진 후 내린 것으로, 후계 문제, 전략적 실수, 재무적 실망이 포함됩니다. 엔진 캐피탈은 다양한 시간대에서 FTSE 250 지수와 동료 집단 평균에 비해 회사의 일관된 저조 실적을 언급했습니다.
추천된 후보는 재무 및 M&A 경험을 가진 투자 전문가 Ryan Dubin과 자본 할당 및 기업 지배구조에 대한 전문 지식을 가진 기업 이사 Alan Hibben입니다. 엔진 캐피탈은 이들이 이사회에 필요한 재무 능력과 주주 마인드를 가져올 것이라 믿으며, 현재 이사들의 긴박감 부족과 최소한의 주식 소유에 대한 우려를 해결할 것으로 기대하고 있습니다.
Engine Capital LP, un actionnaire important de C&C Group Plc, a nommé deux candidats pour l'élection au conseil d'administration de l'entreprise lors de l'assemblée générale annuelle de 2024. Cette décision intervient après des années de mauvaise performance de C&C Group, comprenant des erreurs de succession, des erreurs stratégiques et des déceptions financières. Engine Capital cite la performance médiocre constante de l'entreprise par rapport à l'indice FTSE 250 et aux moyennes de son groupe de pairs sur différentes périodes.
Les candidats nommés sont Ryan Dubin, un professionnel de l'investissement avec de l'expérience en finance et fusions-acquisitions, et Alan Hibben, un directeur d'entreprise expert en allocation de capital et en gouvernance d'entreprise. Engine Capital estime que ces ajouts apporteront des compétences financières nécessaires et une mentalité axée sur les actionnaires au conseil, répondant aux préoccupations concernant le manque d'urgence des directeurs actuels et leur faible propriété d'actions.
Engine Capital LP, ein bedeutender Aktionär von C&C Group Plc, hat zwei Kandidaten zur Wahl in den Vorstand des Unternehmens auf der Hauptversammlung 2024 nominiert. Diese Entscheidung folgt auf Jahre der schlechten Performance von C&C Group, einschließlich Fehler bei der Nachfolge, strategischen Fehltritten und finanziellen Enttäuschungen. Engine Capital verweist auf die konstante Schwäche des Unternehmens im Vergleich zum FTSE 250 Index und den Durchschnittswerten der Peer Group über verschiedene Zeiträume hinweg.
Die nominierten Kandidaten sind Ryan Dubin, ein Investmentprofi mit Erfahrung in Finanzen und M&A, sowie Alan Hibben, ein Unternehmensdirektor mit Fachwissen in Kapitalallokation und Unternehmensführung. Engine Capital glaubt, dass diese Neuzugänge notwendige finanzielle Fähigkeiten und eine Aktionärsmentalität in den Vorstand bringen werden, um Bedenken hinsichtlich des Mangels an Dringlichkeit und der minimalen Aktienbesitz der derzeitigen Direktoren anzugehen.
- Engine Capital owns nearly 5% of C&C Group's outstanding shares, showing significant investment
- Nominated candidates have committed to personally buy shares in the company
- Proposed directors bring expertise in finance, capital allocation, and M&A
- C&C Group has underperformed the FTSE 250 Index and peer group averages across multiple time periods
- Company has experienced succession issues with four CEOs in less than four years
- Current board members collectively own only 0.05% of outstanding shares
- C&C Group is not compliant with the UK Corporate Governance Code 2018 due to combined Chair and CEO roles
- Company's shares are trading at a steep discount to relevant transaction multiples
Issues Open Letter to Fellow Shareholders Regarding the Need for Boardroom Change Following Years of Underperformance
Launches www.ABetterPathforCandC.com to Share Views with Respect to the Company and Communicate with Stakeholders
***
Fellow Shareholders:
Engine Capital LP (together with its affiliates, “Engine” or “we”) is a sizable long-term shareholder of C&C Group Plc (“C&C” or the “Company”), with ownership of just under
| Total shareholder returns over time | ||||||||||||||
| Total Shareholder Return (YTD) |
Total Shareholder Return (1-Year) |
Total Shareholder Return (2-Year) |
Total Shareholder Return (3-Year) |
Total Shareholder Return (Since listed on LSE) |
||||||||||
| FTSE 250 Index | 10.1 |
% |
14.4 |
% |
15.5 |
% |
0.3 |
% |
22.7 |
% |
||||
| Peer Group Average | 22.1 |
% |
28.7 |
% |
29.5 |
% |
2.4 |
% |
31.1 |
% |
||||
| C&C Group plc | 8.9 |
% |
20.1 |
% |
(11.0 |
%) |
(25.4 |
%) |
(49.5 |
%) |
||||
| C&C Group vs. FTSE 250 | (1.2 |
%) |
5.7 |
% |
(26.6 |
%) |
(25.7 |
%) |
(72.2 |
%) |
||||
| C&C Group vs. Peer Group Average | (13.2 |
%) |
(8.5 |
%) |
(40.6 |
%) |
(27.8 |
%) |
(80.6 |
%) |
||||
Despite these numerous missteps, we continue to believe C&C owns unique and strategic assets that are valuable and not properly valued in the public market. Therefore, a month ago, we publicly called on the Company to explore strategic alternatives to maximize value. Following this letter, we privately approached the Board of Directors (the “Board”) to discuss board representation. We believe it is critical to add directors with relevant financial skillsets (such as capital allocation, capital markets and M&A) and a shareholder mindset to assist the Company. Unfortunately, the Board has shown absolutely no interest in trying to resolve this matter privately ahead of the 2024 Annual General Meeting (the “2024 Annual Meeting”). We shared the names of several candidates with the Board and suggested the directors interview our candidates. They never followed up. This disappointing engagement with the Board has led us to conclude that shareholder-driven change is urgently needed following years of underperformance.
We believe the current directors lack a sense of urgency to resolve the Company’s issues and maximize value for shareholders, which is not surprising since they own a de minimis number of shares, as the following table highlights.2
| C&C Group Board Ownership | |||||||||
| Director | Appointment Date | Ownership (shares) |
Ownership as % of outstanding shares |
Open market acquisitions? |
|||||
| Ralph Findlay | 3/1/2022 | 179,510 |
0.05 |
% |
Yes | ||||
| Andrew Andrea | 3/1/2024 | 0 |
0.00 |
% |
No | ||||
| Vineet Bhalla | 4/27/2021 | 15,000 |
0.00 |
% |
No | ||||
| Jill Caseberry | 2/7/2019 | 6,462 |
0.00 |
% |
No | ||||
| John Gibney | 10/26/2022 | 0 |
0.00 |
% |
No | ||||
| Angela Bromfield | 7/13/2023 | 0 |
0.00 |
% |
No | ||||
| Chris Browne OBE | 10/2/2023 | 0 |
0.00 |
% |
No | ||||
| Sarah Newbitt | 8/31/2023 | 0 |
0.00 |
% |
No | ||||
| Total | 200,972 |
0.05 |
% |
||||||
To help catalyze long overdue improvements at C&C, we are seeking to elect two highly qualified director candidates at the Company’s 2024 Annual Meeting on August 15, 2024. Unlike the current Board, our candidates have skin in the game (both candidates have committed to buy shares personally), an ownership mentality and the relevant financial background to help create a sense of urgency and focus on delivering long-term value for all shareholders and stakeholders.
The case for change at C&C is strong. Here is a snapshot of where C&C stands today:
- The Company’s shares have underperformed peers and the FTSE 250 Index over the one-year, two-year, and three-year periods and since the Company’s listing on the London Stock Exchange in October 2019.
- The Company’s shares are trading at a steep discount to relevant transaction multiples.
-
The Company is not compliant with the
UK Corporate Governance Code 2018 by virtue of the roles of Chair and CEO being exercised by the same individual.
-
Most of the directors own no shares, and the Board cumulatively owns
0.05% of the shares outstanding. Directors have no skin in the game.
- We believe the Board in the aggregate has insufficient financial skillsets, especially in the areas of capital allocation, capital markets and M&A.
- The Company’s underlying business segments are not achieving their potential.
- With the recent appointment of Ralph Findlay, C&C has now had four CEOs in less than four years, with the prospect of a fifth chief executive in 12 to 18 months.
THE STATUS QUO CANNOT PERSIST IN THE BOARDROOM – SHAREHOLDER-DRIVEN CHANGE IS NEEDED NOW
Given this background, we believe shareholders would be well served by electing our two highly qualified candidates. Shareholders don’t have to choose between our candidates or the Company’s candidates. Shareholders can simply elect our two candidates in addition to the eight candidates presented by the Company and appoint 10 individuals to the Board. Our directors are committed to entering the boardroom with an open mind, a sense of urgency and a focus on creating long-term shareholder value. As a large shareholder, our incentives are aligned with yours. Our goal is to enable the Company to finally maximize value for its owners. With the election of our two highly qualified directors, I believe we can do just that.
Our highly qualified nominees include:
Ryan Dubin
Mr. Dubin is a representative of the nominating shareholder, an investor and a former investment banker with over a decade of relevant experience in finance, capital allocation, capital markets and M&A.
Ryan Dubin is an investment professional and former investment banker with over a decade of experience working with management teams and company boards to maximize value. Mr. Dubin is an investor at Engine Capital Management, a top C&C shareholder and value-oriented special situations fund with a track record of helping companies implement value-enhancing initiatives, including M&A transactions, operational and cost improvements, and optimization of capital allocation policies. Mr. Dubin has been at Engine Capital since 2020. His responsibilities include sourcing and evaluating investment opportunities as well as monitoring portfolio risk and position sizing. Prior to joining Engine Capital, Mr. Dubin spent his career in investment banking, where he focused on helping companies unlock value through M&A, restructuring and capital market transactions across multiple industries at both Perella Weinberg Partners and Deutsche Bank. Mr. Dubin received a Bachelor of Science in Accounting from The Pennsylvania State University.
Alan Hibben
Mr. Hibben is a corporate director with a strong track record of value creation. He has decades of experience as a former investment banker and private equity executive with significant expertise in capital allocation, corporate governance and M&A.
Alan Hibben is a former Managing Director in the Mergers and Acquisitions Group of RBC Capital Markets. Mr. Hibben also previously held the position of Head, Strategy & Development at RBC Financial Group. In this role, he was responsible for corporate strategy as well as M&A and development activities for the bank. Mr. Hibben was also Chief Executive Officer of RBC Capital Partners, the private equity investment arm of RBC Financial Group. Since December 2014, Mr. Hibben has been an advisor to governments and to several large public and private companies on strategic and other matters. Through his advisory and investment company, Shakerhill Partners Ltd., Mr. Hibben provides financial and strategic advisory services, as well as expert witness services. Mr. Hibben is currently a director of Mattr Corp. (TSX: MATR) (formerly Shawcor Ltd.). Previously, he was Chair of Home Capital Group (TSX: HCG) and HudBay Minerals Inc. (TSX and NYSE: HBM) and a director of Extendicare Inc. (TSX: EXE), Wild Brain Inc. (TSX: WILD) and the Mount Sinai Hospital Foundation. Mr. Hibben received his B.Com. from the University of
Thank you in advance for your consideration of our director candidates. We look forward to engaging with you in the next couple of weeks regarding the opportunity we collectively have to set C&C on a better path at this year’s Annual Meeting.
Sincerely,
Arnaud Ajdler
Managing Partner
Engine Capital LP
***
About Engine Capital
Engine Capital LP is a value-oriented special situations fund that invests both actively and passively in companies undergoing change.
1 Total shareholder return data includes dividends and runs through July 26, 2024. Total shareholder return since LSE listing as of October 8, 2019, which represents the first day C&C shares were publicly listed on LSE. Peer group is per the Company’s 2024 annual report.
2 Data per 2024 annual report and RNS filings.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240730075143/en/
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Longacre Square Partners
Charlotte Kiaie / Bela Kirpalani, 646-386-0091
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Source: Engine Capital LP
FAQ
Who has Engine Capital nominated for C&C Group's Board of Directors?
Why is Engine Capital seeking to add new directors to C&C Group's board?
How has C&C Group's stock performed compared to its peers and the FTSE 250 Index?
What is the current state of C&C Group's board ownership?
When is C&C Group's 2024 Annual General Meeting scheduled?
