logo
Plus   Neg
Share
Email

Engaged Capital Urges Del Frisco's To Explore Strategic Alternatives

Activist investment firm Engaged Capital, LLC has Thursday in a letter to the Board of Directors of Del Frisco's Restaurant Group, Inc. (DFRG) urged them to fulfill their fiduciary obligations to shareholders to explore strategic alternatives for the company, accusing them of destroying substantial shareholder value.

Engaged Capital, together with its affiliates, is a significant shareholder of DFRG and currently beneficially owns 3,328,000 shares, representing about 9.99 percent ownership of the Company.

Engaged Capital believes that there are numerous parties interested in acquiring DFRG's concepts at valuations that would deliver a significant premium to the current share price and be very attractive to the Company's shareholders.

The investment firm claims that the Board's decision to approve the acquisition of Barteca Restaurant Group, which was announced on May 7, 2018 and closed on June 27, 2018, along with the management's weak operating performance in strategy and capital deployment has destroyed substantial shareholder value.

It reiterated that quick and decisive action by the Board for a sale of DFRG, in whole or in parts, presents the most attractive risk-adjusted return for shareholders.

For comments and feedback contact: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Shares of General Electric Co. are rising more than 10 percent on Thursday after the industrial conglomerate said it plans to establish a new, independent company focused on building a comprehensive Industrial Internet of Things or IIoT software portfolio. In addition, longtime bearish analyst Stephen Tusa of J.P. Morgan upgraded shares of GE to neutral. Apple Inc. said Thursday that it will invest $1 billion to build a new corporate campus in North Austin that will eventually create 15,000 jobs. Further, the tech giant announced plans to establish new offices and expand to over 1,000 employees each in three cities - Seattle, San Diego and Culver City, California. In January, Apple said it will create over 20,000 jobs over the next five years. German telecom giant Deutsche Telekom, Chinese conglomerate Alibaba's Alibaba Cloud, banking giant Citi and 13 other organizations have joined Hyperledger Blockchain project, an open source collaborative effort aimed to advance cross-industry blockchain technologies. Hyperledger, a project of The Linux Foundation that started less than three years ago, is a multi-project.
Follow RTT