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Intertape Polymer urged to buy back shares, add experts to board

Published 2015-11-10, 08:56 a/m
© Reuters. Intertape Polymer urged to buy back shares, add experts to board
ITP
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Nov 10 (Reuters) - Intertape Polymer Group Inc ITP.TO
investors FrontFour Capital Group and Zelman Capital urged the
packaging products maker to take steps including buying back
more shares and adding industry experts to its board to boost
shareholder value.
The shareholders, which together own about 6.5 percent of
Intertape, also said on Tuesday that they believed the company's
stock had an upside of 52 percent to the current market price.
Intertape's shares, which have fallen 18.5 percent this
year, closed at C$15.17 on the Toronto Stock Exchange on Monday.
"We also believe that IPG is a highly attractive acquisition
candidate due to its strong market position within its product
lines," FrontFour and Zelman said in a letter to Intertape's
board.
Investment adviser FrontFour owns about 2.8 million shares
and hedge fund Zelman about 1 million in Intertape, which has a
market value of about C$937 million ($706 million) based on
shares outstanding as of June 30.
The investors also asked Intertape to increase borrowing to
buy back shares, saying the company was "over-capitalized with
equity", and said it should consider a listing in the United
States.
Intertape's net earnings fell 3.3 percent to $11.7 million
in the quarter ended June 30, while revenue rose 4 percent to
$196.6 million.
($1 = C$1.33)

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