SandRidge shareholder: ‘We’re not typical activists’
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.
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Comments
This has nothing to do with oil and gas operations in particular… His focus is more on controlling budget/spending of the current management. There is a reason stock of this company has gone from $70 to $7!!! Is he the best man for the job, maybe not, but obviously the current management is running off a tremendous amount of debt (much like his x-partner’s x-company). Singh is just taking action to correct the problem. This would benefit every stockholder and employee before drastic decisions are made to make cuts or sell the company for pennies on the dollar. Tom is such a good guy he took $150 million in last 5 years to turn the stock from $70 to $7… Do your research!
If I am Tom Ward my first order of business for 2013 would be purchase your 6.7 percent of Sandridge outstanding stock because your TPG-Axon is NOT part of the oil and gas industry. Also and I quote “We’re not typical activists,” CEO Dinakar Singh said Tuesday on CNBC.” So my oil and gas advice to you Sir is cash in and get the HELL out of the oil and gas industry.