(Bloomberg) -- An activist investor said it has won enough shareholder support to elect all of its six nominees to the board of Dye & Durham Ltd. next week.
Engine Capital LP, which had put forward its slate of directors arguing the company needs a new direction, said that holders of more than 63% of Dye & Durham’s outstanding shares have voted on its proxy card. The actual voting will take place at the Dec. 17 meeting.
“We thank shareholders for their overwhelming support and hope to work with Chair Colleen Moorehead to effectuate a smooth transition that will enable the new board to start partnering with the company’s terrific employees to serve its customers and enhance value,” Engine’s founder Arnaud Ajdler said in a statement Friday.
“We are in receipt of the proxies, which are being reviewed,” a spokesperson for Dye & Durham said in a message. “The results of the shareholder vote will be announced at the meeting on Tuesday.”
On Thursday, shareholder advisory firm Glass Lewis & Co. recommended shareholders vote in favor of Engine’s candidates, while withholding votes for Chief Executive Officer Matthew Proud. Proud announced in November that he was stepping down, a decision “likely precipitated by an expectation that the activists might prevail with the vote,” according to Bank of Montreal analyst Thanos Moschopoulos.
Dye & Durham went on an acquisition spree after an initial public offering in 2020. It has since been forced to reconsider its growth strategy because of concerns about high leverage. The company had long-term debt of more than C$1.5 billion ($1.1 billion) as of June 30.
(Updates to add Dye & Durham’s response in the fourth paragraph.)
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