Third Point chairman steps down – “impossible to continue”
This morning, the board of Third Point Investors announced that its chairman, Steve Bates, was leaving the board. The company issued the following statement:
“The Board of Third Point Investors Ltd (“TPIL” or the “Company”) announces with regret that the Chairman, Mr Steve Bates, has determined that circumstances have rendered his continued service as a Director of the Company untenable. He has therefore submitted his resignation from the Board with effect from the close of business on 22nd December 2021. As is customary in Guernsey, the Chair is appointed by the Board at each meeting and so an announcement on succession will be made in due course.”
Mr Bates said: “I very much regret having to leave the Board but have recently been put in a position where it is impossible for me to continue as a director of TPIL. I wish to thank my fellow board members, as well as the Manager, for their collective efforts to strengthen the Company’s foundation and its value proposition for investors. I have no doubt these efforts will continue. I strongly believe in the Company, support the Investment Manager, and intend to remain a shareholder in a personal capacity.”
Director Mr Rupert Dorey said: “The Board is appalled that Steve has been put in a position where he has decided to leave the Board, but understands his reason for doing so. During his tenure over the last three years, the Company has made sweeping progress in putting in place robust discount control measures. All this has helped to reduce the discount to its current level of 12% from almost 25% three years ago. Combined with exceptional investment performance over the past year, investors have seen excellent returns: in NAV terms, TPIL has appreciated 28% in the previous 12 months, with a narrowing discount meanwhile contributing to a 41% share price return in the same period. Moreover, as his fellow directors will attest, Steve is a widely respected independent director, keen investor and a person of high moral character who has been an absolute pleasure to work with. We shall miss him but will carry on this Board’s good work and unified agenda to further improve value for all shareholders.”
Third Point Investors then issued the following statement:
“The Board of Third Point Investors Ltd. (the “Company” or “TPIL”) has engaged extensively with Asset Value Investors (“AVI”) and other “activist” shareholders, including Staude Capital. Shareholders recently rejected a motion, framed as a proxy for the broad activist agenda, to remove a director and voted in favour of an exchange mechanism which is designed to help reduce the discount.
Following this, AVI told the media of its intentions to “privately engage” with the Board. The Board welcomed engagement with AVI, as we would with any shareholder, and promptly arranged an in-person meeting with a representative of AVI and separately with representatives of Staude Capital. From the Company’s side Steve Bates, TPIL’s Board Chairman was accompanied by a TPIL adviser.
In the course of one of the meetings, one of the activists resorted to making personal threats against Steve Bates, namely that should he refuse to accede to their proposals, they would attack him in other business areas. This naturally raised a business conflict for Mr. Bates — if he continued as Chair of TPIL, he would be subject to behaviour which would impede the carrying out of all his responsibilities and duties, including those he owes to the Company.
Such personal threats have no place in relations between companies and shareholders and we greatly regret that we will lose Steve as such a valuable member of our Board.”
And then the manager – Daniel Loeb – said:
“Steve Bates’ resignation is loss for all shareholders. The behavior by these so-called “activists” is a stain on institutional investors who attempt to engage constructively with boards and management teams. Being a successful activist requires moving on when shareholders reject your plans rather than resorting to underhanded tactics. These juvenile antics smack of desperation and inexperience.”
TPOU / TPOG / AGT : Third Point chairman steps down – “impossible to continue”