BOSTON, March 1, 2016 /PRNewswire/ -- Highfields Capital Management ("Highfields"), a value-oriented investment management firm that currently holds more than 9% of the outstanding shares of Delta Lloyd N.V. ("Delta Lloyd")(AMS: DL), today, following a meeting with Delta Lloyd management, sent a presentation to the Delta Lloyd Supervisory Board highlighting the reasons it strongly opposes the company's proposed EUR 650 million rights offering. Per Dutch law, Highfields also requested that Delta Lloyd post this analysis on its website to inform other Delta Lloyd shareholders of the company's adequate capitalization and the lack of justification for a dilutive rights offering – basic factors behind Highfields' intention to vote "No."
Highfields believes Delta Lloyd is a great company with hard-working, dedicated employees. However, it has been grossly mismanaged since Hans van der Noordaa became CEO in January 2015. During this period, the value of Delta Lloyd shares has plummeted 70%.
Over the past several months, Highfields has met with Delta Lloyd's management team on several occasions. Highfields did not intend to have a dispute with Delta Lloyd; however, the company has been so unresponsive to expressed concerns and its actions so destructive to shareholders that the firm has no choice but to publicly voice its opposition to the rights issue. The Highfields presentation outlines how Delta Lloyd is adequately capitalized, even in a severe scenario, and that management has created a series of false crises and assumptions in an attempt to justify an excessive capital raise that will only benefit themselves and lead to unnecessary dilution to current shareholders.
Highfields believes that Delta Lloyd shareholders deserve to be fully informed about the proposed rights offering, including reviewing the Highfields analysis, and notes that the voting deadline for the Extraordinary General Meeting is as early as Thursday, March 3rd for many shareholders depending on how shares are held.
About Highfields Capital
Highfields Capital Management is a $12 billion value-oriented investment management firm which manages private investment funds for endowments, charitable and philanthropic foundations, pension funds and other institutional and private investors. The Highfields' funds, whose average holding period for core investments is 3 to 5 years, invest worldwide in public and private companies across a wide variety of industries and security types. The firm was founded in 1998 and is based in Boston, MA.
SOURCE Highfields Capital Management