ISS Unanimous Support for Palliser: Recommends Capricorn Shareholders Vote AGAINST Capricorn’s Misguided Merger with NewMed and FOR All Palliser Board Change Proposals
- Influential proxy advisor endorses Palliser’s proposal to reconstitute board
- Recommends shareholders vote AGAINST the proposed NewMed deal citing “lack of compelling strategic rationale” and “substandard sale process”
- Recommends shareholders vote FOR the removal of seven incumbent directors and the appointment of all Palliser proposed candidates
- Over 40% of shareholders already support comprehensive board change at Capricorn
Key statements by ISS1 in its voting recommendation AGAINST the NewMed deal and FOR Palliser’s entire proposed board slate include:
Proposed NewMed Deal
- “Given the lack of compelling strategic rationale, apparent low valuation and substandard sale process, a vote AGAINST the transaction is warranted.”
- “NewMed's proposal implies a change in control well below NAV, when investors could get exposure to most of the combined entity's equity story by simply buying NewMed shares.”
Board Reform
- “…a vote for the removal of the seven targeted incumbents and full support for the dissident slate is warranted.”
- “Despite billions in investments and divestments over a decade, we do not find evidence that Capricorn created any meaningful value for shareholders.”
- “Given the pervasive loss of faith in the Company’s leadership, and considering that partial change is unlikely to generate sufficient investor trust in a reconstituted board, there appears to be merit to the dissident’s call for a majority change at board level.”
- “The dissident candidates are independent and would make up their own minds as to the appropriate future direction. Their independence is not in doubt…”
“We appreciate the support of ISS in recognising the need for comprehensive change at Capricorn,” commented
The recommendation from ISS endorses the views of over 40% of Capricorn shareholders who have already confirmed support for Palliser’s proposal through letters of intent, public statements and private comments, including
For more information, visit www.ReformCapricorn.com.
About Palliser
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Permission to quote from the ISS report was neither sought nor obtained.
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