Wintergreen Advisers submits shareholder proposal to hire an
independent adviser to evaluate sale of the company or liquidation of
its assets
Wintergreen Advisers, LLC (“Wintergreen”), today announced that it has
submitted a shareholder proposal to Consolidated-Tomoka Land Company
(NYSE:CTO, “CTO”) recommending that the Board of Directors of CTO retain
an independent financial adviser to evaluate ways to maximize
shareholder value through the sale of the company or the liquidation of
its assets.
Wintergreen beneficially owns 1,543,075 shares of common stock, which
constitutes 26.0% of CTO’s outstanding stock. Wintergreen has
beneficially owned more than 10% of CTO common stock since May 2006.
In the proposal, Wintergreen Advisers said:
“We believe CTO management should focus on maximizing shareholder value
either by selling CTO or liquidating CTO’s assets. Daytona Beach and
Volusia County’s real estate values have rebounded since the financial
crisis, which may present an attractive opportunity for an acquirer of
CTO. Alternatively, shareholders may receive better value by receiving a
cash distribution from the sale of the remainder of CTO’s land and the
liquidation of the income property portfolio, before a rising interest
rate environment damages these holdings’ value and reduces shareholder
value. Shareholders have been waiting a long time; now is the time for
CTO’s Directors to evaluate ways to maximize shareholder value.
“In his October 27, 2015 press release, CTO’s President and CEO stated:
‘our recent share price is not representative of the net asset value of
the company.’ We agree.
“Over the past two years, CTO’s management aggressively increased
leverage, dramatically expanded a securities portfolio of undisclosed
holdings and initiated a derivatives portfolio. General and
administrative expenses have soared. The alarming increase in risk and
expenses has not led to a material increase in book or market value, and
clearly is not recognized through stock price appreciation. We believe
the simple truth is that CTO’s management team has failed, and now is
the time to act.
“Therefore, we believe that the greatest value to shareholders will be
realized through a thoughtful evaluation of the sale of CTO or the
liquidation of CTO’s assets. We believe a vote for this shareholder
proposal would benefit all shareholders.”
About Wintergreen Advisers
Established in 2005, Wintergreen is an independent global money manager
that employs a research-driven value style in managing global
securities. As of September 30, 2015, Wintergreen Advisers had
approximately $1 billion under management on behalf of individuals and
institutions through its mutual fund and other clients, and is based in
Mountain Lakes, New Jersey.
For further information on Wintergreen Advisers, please call
973-263-4500 or visit www.wintergreenadvisers.com.
For information, forms and documents regarding our U.S. mutual fund,
please visit www.wintergreenfund.com.
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