Shamrock Activist Value Fund Proposes that NuCo2, Inc. Declare a $7.00 Per Share Special Dividend
11 Luglio 2007 - 8:41PM
PR Newswire (US)
BURBANK, Calif., July 11 /PRNewswire-FirstCall/ -- The following is
a letter from Chris Kiper to Mr. Michael E. DeDomenico, Chairman
and Chief Executive Officer. Mr. Michael E. DeDomenico Chairman and
Chief Executive Officer 2800 SE Market Place Stuart, Florida 34997
Dear Mike: The Shamrock Activist Value Fund ("Shamrock") is a large
shareholder of NuCo2, Inc. ((NASDAQ:NUCO) or the "Company"). We
beneficially own 662,836 shares or approximately 4.3% of the
outstanding shares of the Company's common stock. We have invested
in the Company because we believe that it holds a strong market
share and defensible position in the bulk CO2 industry and appears
poised to deliver increasing financial returns to shareholders. In
January 2007, the Company announced a new strategic growth plan
focused on optimizing customer profitability. We believe that this
strategic shift should improve operating margins, return on
invested capital and free cash flow. We believe that the Company's
capital structure is sub-optimal and could support a substantial
increase in long-term debt without compromising the Company's
ability to execute its business plan. Specifically, after
considering a range of alternatives including, but not limited to,
a further share repurchase, special dividend, and regular dividend,
we recommend that the Company utilize the strength of its balance
sheet and strong cash flows to pay a special dividend of $7.00 per
share and institute an ongoing regular annual dividend of $0.25 per
share. Achieving a debt financing package at attractive rates and
terms should be achievable over the next 60 days. We believe that
the proposed special dividend would be well received and provides
immediate liquidity for all shareholders. In addition to optimizing
the Company's capital structure, after this proposed
recapitalization the Company would still retain a strong and
flexible balance sheet to support its working capital requirements,
organic growth and appropriate opportunistic acquisitions.
Importantly, under our proposal, return on equity increases by 70%
to approximately 16%. Enclosed for your review is a brief summary
of the proposed transaction. A copy of this presentation can be
found at our website at
(http://www.shamrock.com/pages/activist/NUCO_Dividend_Recap.pdf).
It is clear that if management believes it will achieve its
business plan, we believe that shareholders will be significantly
better off if the Company adopts our recapitalization proposal. We
would like the opportunity to discuss further with you and the
other members of the Board ways to enhance shareholder value,
including our proposal outlined above. Respectfully, Chris Kiper
CC: Board of Directors DATASOURCE: Shamrock Capital Advisors, Inc.
CONTACT: Mike McConnell, +1-818-973-4212, or Clifford A. Miller,
+1-818-973-4297, both of Shamrock Capital Advisors, Inc. Web site:
http://www.shamrock.com/pages/activist/NUCO_Dividend_Recap.pdf
Copyright
Grafico Azioni Nuco2 (NASDAQ:NUCO)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Nuco2 (NASDAQ:NUCO)
Storico
Da Giu 2023 a Giu 2024
Notizie in Tempo Reale relative a Nuco2 (MM) (NASDAQ): 0 articoli recenti
Più Nuco2 Inc. (MM) Articoli Notizie