Activist investors raise WH Smith shares but support management | WH Smith

Activist investors Rolls Royce He increased his stake in WH Smith, but claimed to support the struggling High Street chain management.

Causeway Capital Management is the largest shareholder of retailers and currently owns 9% after purchasing shares in response to a recent profit warning. Analysts suggested that California-based investors are betting on the recovery of international travel rather than instigating change.

WH Smith, a product that includes books, newspapers, and stationery sandwiches, has become a coronavirus pandemic as previously successful airport and train station store transactions have collapsed due to travel bans and telecommuting. I was hit. It also acquired Marshall Retail, a US travel retail chain, months before the first blockade.

WH Smith’s stock lost nearly two-thirds of its value in the event of a pandemic, and the company’s response to the crisis included: Reduced employment of 1,500 people.. The world workforce is 14,000 and stocks have since recovered to £ 15.07. This is 37% below the pre-Covid level.

It’s not out of the forest yet. Earlier in September, WH Smith CEO Carl Cowling told the city that “the trajectory of travel recovery remains uncertain,” and profits for the year to August 2022 are expected by the market. He said it would be the lower limit of.

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Last month, Causeway portfolio manager Jonathan Eng called for a change in the boardroom of its largest shareholder, Rolls-Royce.At the time, Eng said the company needed some “Fresh thinking”..However, sources close to WH Smith said they had amicable relationships with the first investor they acquired during the last year. Emergency cash call..

In response to The Sunday Times report, Eng issued a statement suggesting that Causeway’s stakebuilding at WH Smith could predict demands for changes there.

He states: “We firmly believe in WH Smith’s strategy and management. That’s why we first invested in March last year and why we continue to increase our stake. We’re in the long run of our business. We are confident in our growth potential and are pleased to be the largest shareholder of the company. “

Activist investors raise WH Smith shares but support management | WH Smith

Source link Activist investors raise WH Smith shares but support management | WH Smith

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