TPG-Axon Capital did not buy into SandRidge Energy Inc. with an eye on involving itself in the Oklahoma City oil company’s affairs, according to its chief executive.
“We’re not typical activists,” CEO Dinakar Singh said Tuesday on CNBC.
But Singh said the hedge fund identified the stock as one with potential growth value, so it launched an effort to replace CEO Tom Ward and the rest of SandRidge’s board.
Singh, who served as a guest host Tuesday on CNBC’s Squawk Box, said SandRidge has valuable assets, but its overhead spending — including compensation for Ward — are too high.
“This company is the single worst-performing energy stock in the Russell 1000 since its IPO five-and-a-half years ago,” he said. “The stock is down over 70 percent.”
Singh said a leadership change at SandRidge seems to be the only way to rein in the company’s spending.
TPG-Axon, which owns about 6.7 percent of SandRidge’s outstanding stock, has launched a consent solicitation, asking its fellow SandRidge shareholders to approve its plan to replace the board. It has proposed a new board, headed by Singh.
SandRidge has urged shareholders to reject the TPG-Axon plan.