Irenic Capital Comments on Concerning Engagement with Kinaxis Board
Board is Irresponsibly Ignoring Inbound Interest from Potential Acquirors
Urges
“Following our conversations with Kinaxis’ Board of Directors, we are deeply concerned that the Board is not acting responsibly or in the best interests of
For the past few weeks, we’ve had numerous conversations with other
In a situation like this, all value-creating alternatives should be explored before embarking on any single path. A genuine and robust dual-track approach – in which on one track, the Company attempts to identify the best possible CEO candidate and Head of Sales, and, on the other track, it evaluates and solicits interest in
Unfortunately, today’s rushed and ill-advised announcement is not that next step. Rather than genuinely exploring and evaluating all options, the Board continues to make reactive decisions and advance half measures. The press release makes clear the Board has already made up its mind – stating unequivocally that, “the Board strongly believes that execution of its strategic plan is the best path to maximize shareholder value.” Such a statement is irresponsible and contrary to the fiduciary duties of the
Most concerning, in a conversation today, the new Executive Chair revealed to Irenic that there has been inbound interest from financial sponsors, but that the Board is currently unwilling to engage those sponsors.
This is wrong.
To be clear, this Board should not sell
We are confident that shareholders support this approach – and we have made every effort to engage privately with the Board to ensure a real Strategic Review and genuine dual-track process. Disappointingly, the Board remains inflexible and entrenched. We urge the
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