These disclosures are from 13Ds filed with the Securities and Exchange Commission. 13Ds are filed within 10 days of an entity’s attaining more than 5% in any class of a company’s securities. Subsequent changes in holdings or intentions must be reported in amended filings. This material is from April 13 through April 19, 2023. Source: VerityData
Activist Holdings
Veon
(VEON)
Shah Capital reported a stake in the Netherlands-based communications firm of 3,504,735 American depositary receipts, a 5% interest in the company.
Shah Capital delivered a letter to Veon’s board dated April 14 outlining a strategy to boost Veon’s stock price, including the strategic use of the firm’s roughly $2.5 billion in cash. Shah Capital proposes that Veon announce a $200 million 10b5-1 buyback plan and “pledge to use 50% of annual free cash flow” for ongoing repurchases. Shah Capital also believes that Veon should reduce its debt, both to cut its interest expense and strengthen its credit ratings.
Additionally, Shah Capital feels that Veon should spin off or sell various business units and “strive relentlessly to be included in all emerging market indexes and fintech/telecom” exchange-traded funds. Shah Capital says Veon can reach a valuation of six times enterprise value/earnings before interest, taxes, depreciation, and amortization, or EV/Ebitda, by the end of 2024 if the firm successfully implements its recommendations.
Veon ADRs have rocketed more than 60% so far this year, and are up more than 35% in the past 12 months.
Purple Innovation
(PRPL)
Coliseum Capital holds 46,814,450 shares of the mattress-and-bedding retailer, equal to 44.4% stake when accounting for outstanding Class A and Class B stock.
On April 11, Purple Innovation and Coliseum Capital entered into a memorandum of understanding, or MOU, that laid the groundwork for a cooperation agreement by April 19. Under the MOU’s and the agreement’s terms, Purple Innovation’s board will increase to eight seats and include three new appointees, among other changes.
Further, Coliseum Capital co-founder Adam Gray, who has served on Purple Innovation’s board since early 2018, will become chairman. Scott Peterson, a board observer since last September, will be included with Purple Innovation’s other board nominees during the 2023 annual shareholders meeting.
The agreement also calls for the settlement of litigation between Purple Innovation and Coliseum that was overseen by the Delaware Court of the Chancery and reverse recent stock voting amendments. It also requires Purple Innovation to redeem noninterest preferred shares issued last quarter as a stock dividend to the retailer’s common shareholders.
One preferred share was issued for every 100 common Purple Innovation shares owned, and carried 10,000 votes each, in response to Coliseum’s earlier efforts to nominate five directors.
Increases in Holdings
Alta Equipment Group
(ALTG)
B. Riley Financial
(RILY) boosted its holding in the operator of heavy-equipment dealerships to 6,793,217 shares, including 653,454 shares held by B. Riley Financial founder Bryant Riley. From April 4 through April 17, B. Riley Financial bought 139,000 Alta Equipment shares ranging in price from $13.49 to $14.15 apiece.
B. Riley Financial now owns 21.1% of Alta Equipment’s outstanding stock.
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