Ortelius Advisors is making a remaining push for Brookdale (NYSE: BKD) stockholders to vote for the six nominees Ortelius is supporting within the proxy battle for the corporate’s board of administrators.
In a July 7 letter to stockholders, Ortelius Managing Member Peter DeSorcy highlighted the actions that the agency argues have “spearheaded the huge destruction of stockholder worth,” noting Brookdale’s inventory value had dropped 37% over the previous seven years.
The letter from Ortelius on Monday comes after different latest salvos within the proxy battle. On July 1, Brookdale cited that proxy advisory agency Glass Lewis & Co. joined agency Institutional Shareholder Companies (ISS) in advising shareholders to not give management of the board of administrators to all the proposed Ortelius slate, noting considerations with Ortelius’ plans to remake the corporate to unlock worth.
In a July 3 letter to shareholders, Ortelius’ board nominees laid out their high three initiatives for a “turnaround plan” for the corporate, which embody “restoring board accountability and recruiting the following CEO, rationalizing the portfolio and optimizing the platform and rightsizing the steadiness sheet.”
Brookdale has repeatedly pushed again in opposition to Ortelius’ claims and plans, citing and Glass & Lewis Co. that the activist shareholder has had “a poor file of engagement” with the present Brookdale board and that it’s missing needed particulars in its plans for the corporate. Moreover, Brookdale states electing any of the six Ortelius nominees would “danger compromising the continued profitable execution of the corporate’s technique and impairing its CEO search, finally diminishing returns for shareholders.”
To perform the objectives it has set ahead, Ortelius states the present board of administrators is “missing important senior housing and actual property expertise.” As such, ISS has advisable shareholders vote for nominees Steven Vick and Lori Wittman. The July 3 letter additionally states that Ortelius seeks to “unlock the corporate’s worth” by instantly evaluating all the firm’s owned properties and promoting underperforming ones earlier than the top of the 12 months, encouraging managers to “maximize efficiency” and eradicate the corporate’s leased portfolio over time.
In monetizing underperforming belongings, Ortelius states the plan would cut back mortgage debt as properly.
“Ortelius stays deeply involved in regards to the board’s ongoing missteps, shortcomings, strategic failures, poor judgement, execution, decision-making skills and defensive maneuvers,” DeSorcy wrote. “Following years of dismal efficiency, persistent undervaluation, inventory value declines and the huge destruction of stockholder worth, pressing and decisive motion is essential.”
Brookdale didn’t reply to requests for remark as of press time.
The Brookdale shareholder assembly is scheduled for July 11.
