Shares in Canadian natural and organic food group SunOpta jumped 26.7% on Friday (27 May) after it emerged that its largest shareholder, Tourbillon Capital Partners, asked the group to hire advisers to unlock shareholder value.
In a letter, which was included in a public filing, Tourbillon said it believes SunOpta will be a “more valuable business” as part of a “larger enterprise”.
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The hedge fund, which holds a 9.9% stake in SunOpta, said that it is going public with the call after private discussions with management and the company’s board failed to yield results. Tourbillon added that it could potentially push for changes to management and the board if SunOpta’s performance fails to improve and added that it could support an MBO, if appropriate.
Responding to the statement, SunOpta said it had been consulting with Tourbillon for “several months” and added that it “appreciates constructive input from all shareholders”.
“We will review Tourbillon’s suggestions and evaluate them on the basis of what is in the best interests of all shareholders,” the company said.
SunOpta continued: “”It is important to note that over the last year, SunOpta has worked to transform its business through the Sunrise acquisition and through a more deliberate focus on increasing private label products that offer customers some of the most innovative offerings in the organic, non-GMO and specialty food categories. In addition, our globally sourced ingredients business offers us unrivaled access to organic and non-GMO supply and presents a high barrier to entry for competition. The company remains focused on creating efficiencies, improving operational excellence, reducing debt, and increasing profitability as a means to create long-term value for all our shareholders.”
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By GlobalDataEarlier this year, SunOpta struck a deal to sell off its interests in industrial minerals in order to focus on its food interests. Setting out its stall in January, the Canada-based ingredients supplier, private-label group and contract manufacturer, said it will this year focus on improving the performance of its consumer products business.
Shares in the company rose by more than one-quarter on Friday but fell off by 2.48% in pre-market trade today to US$4.84.
