Gary Siegler, Manager Of Indian Creek Investors, A Large Holder Of EnergySolutions, Inc., Suggests Recap With Energy Capital Partners Instead Of Sale At $3.75 Per Share

Jan 09, 2013, 13:50 ET from Indian Creek Investors LP

AVENTURA, Fla., Jan. 9, 2013 /PRNewswire/ -- Indian Creek Investors LP, a private investment fund and a large shareholder of EnergySolutions sent a letter to EnergySolutions suggesting a recapitalization with Energy Capital Partners rather than the recently announced sale of EnergySolutions to Energy Capital Partners at $3.75 per share in cash.  Gary Siegler, the manager of Indian Creek Investors stated in the letter to the Board of Directors, "In our view EnergySolutions is worth considerably more than the $3.75 per share offered by Energy Capital Partners" and requested that "if the Board moves forward on a transaction with Energy Capital Partners, that you consider modifying it as a recapitalization where shareholders who wish to remain invested alongside Energy Capital Partners and Company management may do so, with only those shareholders who prefer to sell at $3.75 per share cashed out by Energy Capital Partners."

A copy of the full letter is included below.

Indian Creek Investors

January 9, 2013

Attn: Board of Directors
EnergySolutions, Inc.
423 West 300 South
Suite 200
Salt Lake City, Utah 84101

Ladies and Gentlemen,

Indian Creek Investors LP, a private investment fund, is the beneficial owner of approximately 4.2 million shares of EnergySolutions.  Based on publicly available information, we believe Indian Creek is the Company's largest shareholder.  In our view EnergySolutions is worth considerably more than the $3.75 per share offered by Energy Capital Partners.  We understand from the Company that EnergySolutions' new management team is also investing in the transaction.

It was only months ago that the Board brought in this new management team and provided them with significant long term equity incentives to lead EnergySolutions forward for the benefit of public shareholders.  Already, extensive progress appears to have been made in improving the Company's balance sheet, cost structure, and business strategy.  Notwithstanding the Company's recent strides, there appears to have been no new auction process that would have allowed potential buyers to evaluate the Company's newly improved condition and prospects.  We believe that just as these positive changes appear to be taking hold that public shareholders should not be frozen out at a price which is less than one-fifth of EnergySolutions IPO price and well below several published analyst price targets. 

We respectfully request that if the Board moves forward on a transaction with Energy Capital Partners, that you consider modifying it as a recapitalization where shareholders who wish to remain invested alongside Energy Capital Partners and Company management may do so, with only those shareholders who prefer to sell at $3.75 per share cashed out by Energy Capital Partners.  If the Company requires additional capital, Energy Capital Partners could buy additional shares directly from the Company.

Kindly let us know your thoughts as soon as possible.

Very truly yours,

Gary Siegler
Managing Member of IC Holdings LLC, as
Managing Member of Indian Creek Asset Management LLC, as
General Partner of Indian Creek Investors LP

Contact:
Sabrina Balgobin
(786) 363-8281

SOURCE Indian Creek Investors LP