Albion River Comments on Recent Statement from Ducommun Board
April 22 2024 - 4:05PM
Business Wire
Albion Has Continued to Increase Equity
Holdings in Ducommun
Today, Albion River LLC issued the following statement:
“Albion River LLC’s affiliate Ignium LP (“Albion”) continues to
acquire shares in Ducommun Incorporated (NYSE: DCO) (“Ducommun” or
the “Company”) and now owns over 9.2% of the Company’s outstanding
shares.1 Albion owns more shares in Ducommun than all of management
and the Board of Directors combined.
Ducommun’s stock hit a 52-week high once Albion’s bid was
disclosed by the Company. Since then, Ducommun has dropped 11%
following the Company’s declaration it “is not for sale”.2
Respectfully, this decision rightfully resides with the owners of
the Company, the shareholders.
Albion would like to thank the numerous key stakeholders who
have reached out to express their support in our efforts to acquire
Ducommun. The Board of Directors has an obligation to evaluate all
offers for the Company. Albion encourages management to disclose
other offers it may have received that the Board of Directors and
public may not be aware of.
The Company’s press release in response to Albion’s bid reflects
a belief that $60 / share does not represent fair value. Therefore,
consistent with executive compensation best practice, the Company’s
Board of Directors should ensure any new stock-based compensation
be converted to options at a $60 strike price to limit shareholder
dilution and further align management to maximizing shareholder
value. Planned stock issuances below $60 are inconsistent with the
Company’s stated position as of April 16th.
Albion continues to believe that public markets are not an
appropriate setting for Ducommun to execute its strategy and
maximize shareholder value. We are committed long-term shareholders
of the Company and intend to make our case directly to shareholders
in due time.
We look forward to engaging with shareholders and members of the
Board of Directors at the upcoming Annual General Meeting on April
24th.”
1 Ducommun ownership percentage information based on the number
of shares outstanding as of February 26, 2024, as set forth in
Ducommun’s proxy. 2 Based on 52-week high ($58.19) and closing
price on April 19, 2024 ($52.02).
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version on businesswire.com: https://www.businesswire.com/news/home/20240422557677/en/
Contact (For Press Inquiries Only): Dan Zacchei/Charlotte
Kiaie Longacre Square Partners albionriver@longacresquare.com On
behalf of Albion River LLC: https://albionriver.com
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