Navigation Links
Sandell Asset Management Seeks Sale of Rubicon & Tenon, Expansion of Board
Date:10/10/2011

NEW YORK, Oct. 10, 2011 /PRNewswire/ -- In response to Rubicon's poor stock performance, Sandell Asset Management's Chief Executive Officer Thomas E. Sandell sent today the following letter to Rubicon's Board of Directors:

Board of Directors
Rubicon Limited
Level 3
7 - 9 Fanshawe Street
Auckland
New Zealand
Attn: Steve Kasnet, Chairman
Luke Moriarty, Chief Executive Officer

Dear Gentlemen:

As you are aware, funds managed by Sandell Asset Management Corp. ("Sandell") own approximately 41.1 million shares in Rubicon Limited (RBC NZ) ("Rubicon"), which represent approximately 14.4% of Rubicon's total outstanding shares. As a long-term investor in Rubicon, Sandell has financially and strategically supported Rubicon and its management over the past ten years. However, as we previously indicated to you, following the failure to launch the ArborGen IPO earlier this year, we have lost faith in the ability, or willingness, of Rubicon's current management to take the steps we believe are necessary to enhance shareholder value in the near term.  The company remains significantly undervalued in the public market, and we believe there are several opportunities the company should pursue to maximize shareholder value.

As we have previously indicated to you, we believe that Rubicon should pursue one of the following strategic alternatives to maximize its value: (1) sell Rubicon in its entirety; or (2) sell Rubicon's controlling interest in Tenon pursuant to an auction process, followed by ArborGen listing its shares for trading on the NASDAQ.  When we spoke earlier this year, you indicated that Rubicon could not focus on value-enhancing alternatives until it had addressed several refinancings that were in process at the time.  Those refinancings have been completed, and there should be no other excuse for your failing to promptly consider the strategic alternatives we have proposed.  

In addition, we believe that Rubicon should expand its Board of Directors to include an additional three directors who are representatives of Rubicon's shareholders.  We believe it is critical for the shareholders to have a voice at the board level, to insure that the board is focused on acting in the shareholders' best interest.

Rubicon's stock, after sustaining a loss of nearly 66% this past year, is currently trading at approximately NZD 0.40 per share.  We believe that it is potentially worth upwards of NZD 1.20 per share, or three times its current market value, and that pursuit of the strategies we suggest could achieve a realization of that value.  Furthermore, we believe Rubicon could be worth as much as NZD 1.65 per share based on the values of ArborGen and Tenon as separate strategic targets. On a standalone basis, each of ArborGen and Tenon is a very attractive investment opportunity.  ArborGen is one of the only global biotech companies focused on the genetically modified tree seedling market. This early-mover status has provided ArborGen with a competitive advantage that, with the help of additional equity investments obtained from listing on an exchange, could lead to a tremendous growth opportunity for ArborGen. On the other hand, Tenon is one of the largest vertically-integrated distributors of building products in the U.S. Although Tenon has sustained difficulties in recent years as a result of low levels of large discretionary remodeling activity in the U.S. and the rising NZD:U.S. exchange rate, we believe that there is a large amount of untapped growth that remains available to Tenon, especially in light of macro fundamental indicators that the U.S. housing market is at 40-year lows. A strategic buyer could fund growth and acquisition plans for the business, which should include restructuring Tenon's current operations, launching new do-it-yourself products, reducing costs and expanding into new geographic markets (e.g. China, Europe and Australia).

Enclosed is a white paper presentation containing a more detailed explanation of the strategies that we are recommending Rubicon undertake and a financial analysis of their potential effects.  Please do not hesitate to contact us with any questions you may have. We look forward to continuing our discussions with you and working with Rubicon in pursuing a direction that will maximize the value of the company for all of its shareholders.

Sincerely,

Thomas E. Sandell

Chief Executive Officer

The white paper presentation referenced is available at http://www.sandellmgmt.com/News/Rubicon.pdf or by request.


'/>"/>
SOURCE Sandell Asset Management
Copyright©2010 PR Newswire.
All rights reserved

Related biology technology :

1. Generex Augments Cash Position With Sales of Non-Essential Assets
2. delSECUR CORPORATION Announces Its Dissolution; and the Distribution of Its Asset to Its Lenders and Shareholders of the Corporation
3. Bacterin International Signs LOI to Acquire Assets of Robinson MedSurg LLC
4. Novogen and Marshall Edwards Sign Asset Purchase Agreement
5. Solutia Announces Sale of Perkalink® Business and Select Primary Accelerators Assets
6. Private Sector Investment in Agriculture Emerging as a Significant Alternative Asset Class: New HighQuest Partners Study
7. Genaera Liquidating Trust To Sell Remaining Proprietary Assets
8. OTCBB-WNDM Announces LOI to Acquire VHGI Assets for $10 Million Cash/Stock
9. Pharmasset to Webcast an Investor Event from the AASLD Meeting
10. Corgenix Secures $1,750,000 Asset Based Credit Facility Representing Initial Gross Proceeds of $1.109 Million
11. Gen-Probe to Consolidate Industrial Assets Into New, Independent Company
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:3/3/2020)... ... , ... Ideal Implant Incorporated Founder and CEO, Robert S ... IMCAS Innovation Shark Tank 2020 in Paris, France in January. The international conference ... industries that promise to revolutionize medical practices in their fields. , “After ...
(Date:2/21/2020)... ... February 20, 2020 , ... The ... chemistry. Humans have been increasingly successful in innovating ways to engineer these ... technologies and strategies for modern molecular biology (e.g., gene sequencing, writing, and ...
(Date:2/19/2020)... ... February 18, 2020 , ... Intech , ... of a new and unified global brand identity, as it celebrates its 20th ... challenges, as well as an enthusiasm for designing and manufacturing state-of-the-art medical devices, ...
(Date:2/10/2020)... ... February 10, 2020 , ... R3 Medical Training announced it is ... 2020 in Las Vegas. The course is hands on involving real patients and stem ... few years, the Comprehensive Stem Cell Training Course has received rave reviews from attendees, ...
Breaking Biology Technology:
(Date:3/11/2020)... ... March 11, 2020 , ... Polysense Technologies Inc., (Polysense) an ... temperature infrared touch-free monitoring product family, a standalone thermal meter WxS x800-IRTMS, and ... uplink for cloud connectivity such as NB-IoT, Wi-Fi, LoRaWAN, and 4G LTE, , ...
(Date:3/5/2020)... ... March 05, 2020 , ... ... of its Scientific Advisory Board (SAB) comprised of the industry’s key opinion ... cell therapy centers, and private industry. Cytonus is a leading cell-based platform ...
(Date:3/4/2020)... ... 04, 2020 , ... Vitamin Science, Inc, a manufacturer of ... nutraceutical formula for ocular blue light protection. , VisiVite Blue Light Basher ... retina’s healthy pigmentation and improve the eye’s management of high energy blue light. ...
Breaking Biology News(10 mins):