Business Wire

Elliott Calls for Acceleration of CEO Succession, Replacement of Chairman of Supervisory Board and Share Buyback at GEA

Jaa

Elliott Advisors (UK) Limited advises funds (together “Elliott”) which collectively have disclosed an interest in excess of 5% in the ordinary shares of GEA Group AG (“the Company”, or “GEA”).

Elliott believes GEA’s shares remain significantly undervalued following a protracted period of profit warnings, guidance downgrades and limited progress vis-à-vis execution of the Company’s “OneGEA” transformation program. Despite leading market positions in structurally attractive segments and high quality products, during the tenure of the current Chairman Dr. Helmut Perlet, GEA’s Total Shareholder Return (“TSR”) has been a disappointing -28%, ranking it amongst the worst performers in the Euro STOXX 600 Industrial Engineering Index which enjoyed a TSR of +29% over the same period. As highlighted by leading proxy advisor Institutional Shareholder Services (ISS), GEA also suffers from concerning governance issues such as a lack of independence amongst key Supervisory Board members, including the Chairman, on account of excessively long Board tenure, and a disconnect between executive pay and the Company’s performance.

Elliott invested in GEA because it believes there is a substantial value-creation opportunity for the Company and all of its stakeholders. By acting decisively and swiftly in the wake of the recently announced departures of its CEO and CFO, and getting the right leadership and governance in place, GEA can regain its investors’ trust and avoid a lengthy period of business drift and market uncertainty.

Elliott encourages the Company to announce the following without further delay:

  • Acceleration of the CEO succession timeline. Mindful that a formal selection process was launched in March 2018, it is disappointing that the Company has not already completed this process. Elliott urges the Company to announce a new CEO without further delay and, once appointed, invites the new CEO to commence a strategic review in which all options to enhance stakeholder value should be considered.
  • Steps to strengthen the composition of the Supervisory Board, including replacement of the current Chairman Dr. Helmut Perlet. Elliott believes that the shareholder representative positions on the Supervisory Board must be refreshed over the coming months, in consultation with GEA’s largest investors to improve the Company’s independence and accountability.
  • Initiation of a substantial share buyback program. GEA’s liquidity profile, commitment to refrain from material M&A in 2018, and currently depressed share price create an attractive environment to initiate a substantial new share buyback program. The Company’s comments at its March 2018 Capital Markets Day and Elliott’s own analysis suggest that GEA could take advantage of the renewed authorization to acquire and use treasury stock without risking its investment grade credit rating.

About Elliott

Elliott Management Corporation manages two multi-strategy investment funds which combined have approximately $35 billion of assets under management. Its flagship fund, Elliott Associates, L.P., was founded in 1977, making it one of the oldest funds of its kind under continuous management. The Elliott funds’ investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the firm. Elliott Advisors (UK) Limited is an affiliate of Elliott Management Corporation.

Contact information

Media Contacts
London
Sarah Rajani CFA
Elliott Advisors (UK) Limited
+44 (0) 20 3009 1475
srajani@elliottadvisors.co.uk
or
Frankfurt
Thomas Katzensteiner / Tobias Eberle
Charles Barker Corporate Communications
+49 69 79 40 90 25 / 24
Thomas.Katzensteiner@charlesbarker.de
Tobias.Eberle@charlesbarker.de

Tietoja julkaisijasta

For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.

Tilaa tiedotteet sähköpostiisi

Haluatko tietää asioista ensimmäisten joukossa? Kun tilaat mediatiedotteemme, saat ne sähköpostiisi välittömästi julkaisuhetkellä. Tilauksen voit halutessasi perua milloin tahansa.

Lue lisää julkaisijalta Business Wire

Kalray Releases the Kalray Neural Network 3.0 (KaNN) to Accelerate Artificial Intelligence Application Development13.11.2018 21:26Tiedote

Kalray (Euronext Growth Paris – ALKAL), a pioneer in processors for new intelligent systems, today announced the launch of the Kalray Neural Network 3.0 (KaNN), a platform for Artificial Intelligence application development. KaNN allows developers to seamlessly port their AI-based algorithms from well-known machine learning frameworks including Caffe®, Torch® and TensorFlow® onto Kalray’s Massively Parallel Processor Array (MPPA®) intelligent processor. Artificial Intelligence is at the heart of a growing number of applications such as autonomous vehicles, intelligent storage servers, data centers, robotics, drones, and more. Kalray’s manycore MPPA® intelligent processor has been architected from the ground up to meet the incredible performance requirements of such advanced applications. However, it is crucial to provide an easy way for AI developers to seamlessly support the AI networks they develop. “The Kalray MPPA® intelligent processor is capable of processing massive amounts of d

Sharjah International Book Fair 2018 Celebrates Reading and Culture with 2.23 Million Visitors13.11.2018 21:17Tiedote

The world’s third largest celebration of the written word, the Sharjah International Book Fair (SIBF), has put up yet another record performance in its 37th annual edition. Themed ‘A Tale of Letters’, the event was a dream come true occasion for book lovers, who had access to 20 million books, all under one roof. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181113006044/en/ Sharjah International Book Fair 2018 - Provided by Sharjah Book Authority (Photo: Business Wire) Organised by the Sharjah Book Authority (SBA) in the emirate of Sharjah, cultural capital of the United Arab Emirates (UAE), SIBF 2018 witnessed a footfall of 2.23 million visitors in 11 days, including 230,000 school students who poured in from around the country. The Sharjah International Book Fair hosted 1,874 publishers from 77 countries who brought in 1.6 million titles, 80,000 of which were seen at the fair for the first time. It also offered its stage

Communications and Business Transformation Strategist Brian Ellner Joins BCW to Lead U.S. Corporate Practice13.11.2018 21:00Tiedote

BCW (Burson Cohn & Wolfe), a leading global communications agency, announced today that Brian Ellner has joined as Executive Vice President, Global Corporate Solutions, responsible for leading and growing BCW’s U.S. Corporate Practice. Ellner takes on the role previously held by Aranthan “AJ” Jones II, who will now lead the firm’s Public Affairs and Crisis Practice in the U.S. “Corporations are navigating an increasingly complex world where their reputations are tied not only to their own performance but also to their behavior on topics like climate, gender pay equity, visa status, diversity and inclusion and the environment,” said Chris Foster, President, North America, BCW. “Brian has deep experience helping clients build and protect their reputations, manage business transformation and create authentic social purpose engagements. He is a seasoned strategic counselor and power player in the New York business world and will bring our clients and our business clear opportunities for gr

Alliance Ventures Invests in Enevate to Advance Li-ion Battery Technology for Electric Vehicles13.11.2018 19:00Tiedote

Alliance Ventures, the strategic venture capital arm of Renault-Nissan-Mitsubishi, has announced today that it has invested in the latest round of funding in Enevate Corporation, an advanced lithium-ion (Li-ion) battery technology company based in Irvine, California. This marks the latest technology investment by Alliance Ventures, launched earlier this year to support start-ups, early-stage development, and entrepreneurs at the cutting edge of next-generation systems for the automotive industry. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181113005136/en/ Francois Dossa, Alliance Global Vice President, Ventures and Open Innovation, said: “We are pleased to participate in Enevate’s latest funding round. This strategic investment allows us to support the development of Enevate’s proprietary, cutting-edge electrode technology. Continued development in this critical field will help us accelerate the electrification of our ve

P&G Tackles Clean Water, Gender Equality and Plastic Waste in 2018 CSR Report13.11.2018 17:05Tiedote

The Procter & Gamble Company (NYSE:PG) extends its long history of doing good in the world by bringing the comforts of home to those impacted by disasters, continuing to spark conversations about diversity, inclusion and gender equality with its advertising and making meaningful impact on the environment with new 2030 goals including a vision to ensure that none of the Company’s packaging ends up in the world’s oceans. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181113005694/en/ P&G issued its 2018 Citizenship Report, which highlights the Company's progress in its Citizenship priority areas of Community Impact, Diversity & Inclusion, Gender Equality and Environmental Sustainability, all of which are based in a foundation of Ethics and Corporate Responsibility. (Graphic: Business Wire) Captured in the 2018 Citizenship Report released today, P&G highlights the recent activities that define the Company as a force for good an

ISACA Refreshes COBIT Framework to Address Latest Business Technology Trends and Standards13.11.2018 17:03Tiedote

ISACA, the global association for information and technology (I&T) audit, risk, governance and security professionals, has released its first update to the COBIT framework in nearly seven years. The new version, COBIT® 2019, provides comprehensive and more practical guidance to help enterprises better govern and manage their information and technology. The COBIT framework is used by enterprises in all industries around the globe, and COBIT publications have been downloaded more than one million times. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181113005757/en/ ISACA introduced COBIT in 1996 to provide and organize a set of controls for IT. The new iteration of COBIT will come in four phases and will include focus areas reflecting trends and priorities in technology (e.g., DevOps, cybersecurity), updates aligned with the latest industry standards, and a design guide that provides flexibility and guidance to help organizat

Uutishuoneessa voit lukea tiedotteitamme ja muuta julkaisemaamme materiaalia. Löydät sieltä niin yhteyshenkilöidemme tiedot kuin vapaasti julkaistavissa olevia kuvia ja videoita. Uutishuoneessa voit nähdä myös sosiaalisen median sisältöjä. Kaikki STT Infossa julkaistu materiaali on vapaasti median käytettävissä.

Tutustu uutishuoneeseemme