The Brink’s Company
(NYSE: BCO) directors may face some competition during this upcoming
proxy after MMI Investments unveiled its own slate of board candidates
in a PRE14A filing with the SEC. The activist hedge fund charges that
the security company’s valuation has chronically lagged its peers while
management has failed to address the issues of strategic configuration
that have caused this under-performance. MMI contends that its nominees
are highly qualified and committed to selecting and executing the
strategy that will maximize shareholder value. So, is Brink’s worth a
second look now?
MMI Investments currently owns approximately 8.4 percent of Brink’s
with other activist shareholder holding additional substantial stakes,
which increases the chances of success in this particular scenario. The
activist hedge fund believes, as many others have in the past, that has
a best-of-breed portfolio of assets but is chronically undervalued
thanks to a “conglomerate discount”. Activist hedge funds have long
recommended that the company spin-off its various divisions in order to
unlock value for shareholders.
MMI’s proposed slate of directors are totally committed to the
creation of shareholder value and have the necessary experience and
skillsets to execute on that commitment, both operationally and
strategically. They offer substantial expertise in the security
industry and have the strategic vision to value creation. Translated:
Not only will they push for a spin-off, but they will also effectively
oversee the various resulting companies and/or obtain the most
favorable pricing in the event of a sale of any divisions. Combined, these factors make Brink's a stock worth watching with the upcoming board of directors!
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