Dallas, Texas 02/13/2014 (FINANCIALSTRENDS) – The management of the $400 million market capped Chemicals manufacturer Rentech, Inc. (NASDAQ:RTK) seem to have decided to take the reconciliatory approach to address the mounting criticism from a section of its activist share holders about their way of running the business which generated revenue of $388 million over the past one year.
This came through clearly when one followed the very reasonable sounding press note released by the management of Rentech, Inc. (NASDAQ:RTK) on 13th January, in response to the development of institutional investors like “Engaged Capital, LLC (Engaged) and Lone Star Value Management, LLC” who have joined forces and propped up four candidates for the upcoming elections to choose board of directors, during the soon to be held Annual shareholders general body meeting.
The press note read as follows, “Rentech is always open to constructive input from our shareholders as part of the Company’s constant focus on maximizing shareholder value. In keeping with our commitment to maintain a highly qualified and experienced Board, Rentech’s Nominating and Corporate Governance Committee will carefully evaluate Engaged’s and Lone Star Value’s nominees and recommend in due course to the full Board nominees that it believes will best serve the interests of the Company and all of its shareholders”.
The press note goes on to claim that over the past few quarters, the management team will continue to execute in a smart and timely fashion, the long term strategic road map which is designed to derive extensive share holder value. The note specifies that the management team will work whole heartedly to develop their wood fibre business further to make it attractive for a initial public offering in the next two years.
Rentech, Inc. (NASDAQ:RTK) has retained the services of financial firms Credit Suisse and Latham & Watkins LLP as its financial and legal advisors respectively to navigate through the current situation.