Argo Capital submits to auction block while under interim management
Argo Capital will proceed directly to its promised review of strategic options while under the leadership of interim CEO Thomas Bradley (pictured), but need not deliver a transaction at any cost.
“As [CEO] Kevin [Rehnberg] remains on leave, I will lead the efforts with the board to evaluate the range of potential strategic options,” Bradley said in prepared statements at the outset of the company's Q1 earnings call.
Comments follow official word April 28 that Argo will open a strategic options review to move to a potential sale, merger or other deal.
“The objective is simple: to maximise value of the company strategy and its considerable long-term prospects for the benefit of all shareholders,” Bradley said.
The review need not end in action. “As is typical in these situations, there can be no assurance that this will result in the company pursuing a particular transaction or other strategic outcome,” he said. The company has set no timetable and is ready to zip lips until further notice.
The move comes, the board's eye, as share prices have failed to keep pace with value inherent in the “number of strategic initiatives that we believe have positioned the company for a clear and consistent long-term path to stable growth and profitability.”
Bradley sat down in the interim CEO seat only two months ago, having been delegated to the C-suite from the board of directors upon the medical leave of CEO Rehnberg in early March.
Shareholders had given some signs of exasperation, or potentially interest.
Minority shareholders led by Capital Returns Master had lined up for a minor challenge to leadership at the 2022 AGM. Capital Returns Master had hoped to place two independent members to the board of directors, shake up executive compensation and name the next auditor.
“In light of the Company’s poor financial and longstanding stock price underperformance under the oversight of the current Board, we strongly believe that the Board could use additional skills and expertise,” Capital Returns Master said in its proxy materials to fellow shareholders.
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