Continues to Increase Ownership, Disclosing
7.3% Interest
Nominates Highly Qualified, Independent Slate
of Shareholder Representatives Prepared to Reverse Decade-Long 92%
Decline in Share Price
Blackwells Highlights Issues of Company
Disclosures and Delay Tactics
Blackwells Capital LLC (together with its affiliates,
“Blackwells Capital” or “Blackwells”), an alternative investment
management firm with an approximate 7.3% ownership interest in
Supervalu Inc. (NYSE: SVU) (“Supervalu” or the “Company”), today
announced it has filed preliminary proxy materials to elect six
highly qualified candidates to Supervalu’s Board of Directors (the
“Board”) at the upcoming 2018 Annual Meeting of Shareholders (the
“Annual Meeting”).
Over the last decade, Supervalu’s share price has declined 92%,
reflecting the loss of over $5.4 billion for its shareholders. Over
the same period, the Russell 2000 Consumer Staples Index has risen
134%. Blackwells believes this (stark) juxtaposition is symptomatic
of an ensconced Board that lacks the requisite experience to
oversee a winning strategy. Further, owning just 0.53% of the
Company’s shares, the Board has de minimis alignment with
shareholders.
We believe it is time for change.
Blackwells has nominated six outstanding professionals to serve
on the Board in place of incumbent directors. These nominees are
grocery, wholesaling, logistics and food service veterans,
including former chief executive officers and chief financial
officers of industry-leading companies. Collectively, the nominees
have more than 220 years of combined leadership, strategic and
operational experience.
Blackwells remains confident that the right strategy, coupled
with an engaged and experienced board to oversee it, will allow
Supervalu stock to appreciate to at least $45 per share, the target
price identified in its February 6, 2018, public presentation.
(This detailed analysis of Supervalu’s opportunities and strategy,
assets and potential value is available to all shareholders at
www.savesupervalu.com.)
Jason Aintabi, Managing Partner at Blackwells Capital, said,
“Supervalu has a powerful foundation upon which to evolve grocery
wholesaling, and the distribution and logistics capabilities that
power it. It also has opportunities to review strategic
alternatives that can substantially accelerate its ability to
unlock shareholder value. However, with the share price still
trading near six-year lows, the Company’s half measures – enacted
in response to shareholder pressure – and a constant sense of
reaction rather than pioneering, it is clear that Supervalu’s Board
is a pressure point the market will continue to exploit.”
Added Aintabi, “To support this view, shareholders need only
look to the Board’s delay in scheduling the Annual Meeting: the
earliest record date that the Board could now set is at least six
weeks behind any record date over the last 15 years. To neglect
basic duties, conceivably in an effort to buy time and deflect
legitimate shareholder pressures, is unambiguous entrenchment.
Worse, it’s emblematic of reactionary and uninspired
leadership.”
In its preliminary proxy statement, Blackwells has also
submitted a proposal for shareholder approval at the Annual Meeting
for Supervalu to provide more robust disclosures concerning the use
of its private jet, particularly by non-employees and for
non-business purposes. In the face of billions of dollars of lost
shareholder value, it is appropriate to inquire about corporate
waste. To date, Supervalu has refused to provide information about
the use of the private jet by the family members of the executives
and directors and the use of the jet for non-business purposes.
Aintabi concluded, “Supervalu is one of the most cheaply valued
of all consumer staples public companies despite significant,
tangible advantages, especially in relation to its direct
competitors. Blackwells is confident that, with a clear mandate, an
ethos of excellence and a track record of responsible stewardship,
the nominees it has submitted for shareholder consideration will
confer proper leadership such that the Company’s value in the
market will reflect its significant assets and industry-dominating
potential. Supervalu shareholders require a higher standard of
director to achieve this, and we now have the opportunity for
exactly that.”
About Blackwells Capital
Blackwells Capital is an alternative investment manager
dedicated to global fundamental and special situation investing
across capital structures. Founded in 2016 by Jason Aintabi, its
Managing Partner, Blackwells’ investment approach is
research-intensive, value-oriented and concentrated.
CERTAIN INFORMATION CONCERNING THE
PARTICIPANTS
Blackwells Capital LLC, together with the other participants
named herein (collectively, “Blackwells”), has filed a preliminary
proxy statement and accompanying GREEN proxy card with the
Securities and Exchange Commission to be used to solicit votes for
the election of its slate of highly-qualified director nominees at
the 2018 annual meeting of stockholders (the “2018 Annual Meeting”)
of Supervalu Inc., a Delaware corporation, and for the approval of
a business proposal to be presented at the 2018 Annual Meeting.
BLACKWELLS STRONGLY ADVISES ALL STOCKHOLDERS OF THE COMPANY TO
READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS AS THEY BECOME
AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH
PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC’S WEB
SITE AT HTTP://WWW.SEC.GOV. IN ADDITION, THE PARTICIPANTS IN
THIS PROXY SOLICITATION WILL PROVIDE COPIES OF THE PROXY STATEMENT
WITHOUT CHARGE, WHEN AVAILABLE, UPON REQUEST. REQUESTS FOR COPIES
SHOULD BE DIRECTED TO THE PARTICIPANTS’ PROXY SOLICITOR.
The participants in the proxy solicitation are Blackwells
Capital, Jason Aintabi, Richard A. Anicetti, Steven H. Baer, R.
Chris Kreidler, Frank Lazaran, James J. Martell and Sandra E.
Taylor (collectively, the “Participants”).
As of the close of business on May 28, 2018, Blackwells Capital
beneficially owns 2,243,800 shares of common stock, $0.01 par value
(the “Common Stock”) of the Company, including 666,300 shares
underlying currently exercisable call options. Mr. Aintabi, as the
managing partner of Blackwells Capital, may be deemed the
beneficial owner of the 2,243,800 shares of Common Stock
beneficially owned directly by Blackwells Capital. In addition, as
of the date hereof, Mr. Aintabi beneficially owns directly 96,605
shares of Common Stock, including 460,400 shares underlying
currently exercisable call options. As of the date hereof, none of
Messrs. Anicetti, Baer, Kreidler, Lazaran, Martell or Ms. Taylor
own any shares of Common Stock.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180529005651/en/
Investors:Morrow SodaliMike Verrechia,
800-662-5200Blackwells@morrowsodali.comorMedia:Gagnier
CommunicationsDan Gagnier / Jeffrey Mathews / Patrick
Reynolds646-569-5897
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