Leading Independent Proxy Advisor Recommends Methanex Shareholders Vote the WHITE Proxy for Management’s Nominees
April 10 2019 - 2:48PM
Methanex Corporation (“Methanex” or the “Company”) (TSX:MX)
(NASDAQ:MEOH) announces that leading independent proxy advisor
Glass Lewis and Co. (“Glass Lewis”) has recommended that Methanex
shareholders vote “FOR” all the Company director nominees at the
upcoming annual general meeting of shareholders on April 25, 2019.
In reaching its recommendation, Glass Lewis
stated the following:
About Methanex’s track record of
balancing profitable growth and returning cash to
shareholders:
- “We would highlight the fact that Methanex's returns have
consistently outpaced the peer subset and, more broadly and perhaps
more importantly, the selected indices, each of which counts the
Company as a constituent… All other factors held equal, we believe
the data supports the notion that Methanex has historically been
capable of managing large, capital intensive projects through
industry cyclicality while generating attractive shareholder
returns relative to suitable benchmarks.”
About Methanex’s corporate governance
and board composition:
- “In sum, then, we do not view Methanex as having particularly
high-risk corporate governance architecture and find investors have
consistently voted in a manner that suggests there are limited
concerns with the current board composition.”
- “We would suggest critical decisions around a board spill
should focus considerably less on nominal standards of excessive
tenure and more on the scrutinized particulars of the nominees
targeted for replacement. In this regard, it should be noted
M&G submits substantially no specific arguments in relation to
the historical service of Messrs. Aitken, Balloch and Cook and Ms.
Rennie, and instead essentially asks investors to assume these
directors are underperforming -- presumably by failing to
sufficiently challenge management -- by virtue of their lengthy
service.”
About the Geismar 3
opportunity:
- “M&G's own presentation, filed with SEDAR on April 5, 2019,
highlights that [M&G] has routinely endorsed the Company's most
complex and capital intensive initiatives to date, including
physically transferring two plants several thousand miles and
reopening several other production facilities. Further still,
M&G acknowledges it initially offered support for the Geismar 3
project, subject to certain conditions. In short, then, it is worth
noting [M&G] does not have an established history of raising
doubts around comparable strategic actions, and, more pertinently,
does not attempt to retroactively tie any of those actions to
diminished shareholder value (a position we believe would be
challenged by Methanex's aforementioned returns profile in any
case).”
- “Just as problematic is the fact that M&G is essentially
seeking significant board change based on a highly speculative
outcome in relation to the evaluation of Geismar 3, the potentially
negative impact of which is heavily predicated on a series of
uncertain assumptions and observations.”
In response to the Glass Lewis Report, Methanex
President & Chief Executive Officer, John Floren, said the
following: “The Glass Lewis Report reinforces our board’s
stewardship and rigorous and disciplined approach to every major
investment decision, with a focus on creating shareholder value. It
also echoes what we have been hearing from shareholders in recent
weeks who support our balanced approach to profitable growth with a
commitment to returning cash to shareholders while maintaining a
strong balance sheet. As the voting deadline nears, I
encourage all shareholders to reject M&G’s singular focus on
divesting, not investing in Methanex’s growth and vote “FOR” all of
management’s nominees.”
Voting is Now OpenShareholders are urged to
vote management’s WHITE proxy form or voting instruction form FOR
only management’s 11 director nominees before April 23, 2019 at
10:30 a.m. (Vancouver time) and WITHHOLD on M&G’s
nominees.Disregard any blue proxy you might receive from
M&G.Voting is now open. If you have questions or need help
voting, contact Kingsdale Advisors at 1-888-327-0821 or
at contactus@kingsdaleadvisors.com.
For further information, contact:
Kim CampbellManager, Investor RelationsMethanex
Corporation604 661-2600 or Toll Free: 1 800 661
8851www.methanex.com
Ian RobertsonExecutive Vice President, Communication
StrategyKingsdale AdvisorsDirect: 416-867-2333Cell:
647-621-2646Email: irobertson@kingsdaleadvisors.com
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