JACKSONVILLE, Fla. and VANCOUVER, BC, Jan. 10,
2023 /CNW/ - Riverstyx Capital Management, LLC and LM
Asset Fund Limited Partnership do not support Glencore Canada's
proposed acquisition of Noranda Income Fund (TSX:NIF.UN) under its
current terms. The transaction is an opportunistic attempt by
Glencore Canada to take advantage of NIF's depressed trading price
and current challenges to acquire a valuable asset at a significant
discount to its inherent value.
"Under its current terms, we do not support the proposed
acquisition," said Ben Franklin,
founder and portfolio manager of Riverstyx. "NIF's independent
trustees (all of whom have been hand-picked by Glencore) have
agreed to support a proposal that drastically undervalues NIF. It
also appears that there was no meaningful attempt to identify or
pursue alternatives that could deliver higher value to unitholders.
This highlights why the board needs to be reconstituted. As
large, long-term unitholders we will continue to pursue our efforts
to reconstitute the board with new independent trustees who will be
focused on protecting the interests of public unitholders."
As previously announced, Riverstyx and LM, together with
Douglas Warwick, who collectively
own approximately 22% of NIF's outstanding priority units, have
requisitioned a special meeting of unitholders to reconstitute the
board of trustees of Noranda Operating Trust and are proposing to
replace all four of the current independent trustees with a new
group of highly-qualified, experienced and truly independent
individuals. The meeting is scheduled to be held on March 28, 2023. For further information, please
refer to the November 24, 2022 press
release issued by Riverstyx and LM.
Each of Riverstyx, LM and Mr. Warwick currently intend to vote
against Glencore Canada's proposed acquisition of NIF and will
continue to pursue their efforts to replace the independent
trustees.
SOURCE Riverstyx Capital Management, LLC