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CHICAGO - Investment firm Marlton Partners L.P. has publicly challenged the board of 180 Degree Capital Corp. (NASDAQ: TURN) to expedite a shareholder vote on the company’s pending sale to Mount Logan Capital Inc. (Cboe Canada: MLC), which currently trades at $0.85 and has shown strong momentum near its 52-week high of $0.96. Marlton, which owns about 5.2% of TURN’s outstanding stock, criticized the board’s management and governance in a letter released today, emphasizing the need for shareholder democracy. For detailed analysis of both companies involved in this transaction, InvestingPro offers comprehensive research reports with expert insights and valuations.
The letter, signed by James C. Elbaor, Managing Member of Marlton Partners, argues that the TURN board has been delaying the vote on the proposed sale for over five months since the definitive deal was announced on January 17, 2025. Meanwhile, Mount Logan Capital has demonstrated strong performance, with a 33.33% YTD return and 38.36% gain over the past year. Marlton accuses the board of stonewalling a superior offer and failing to run a legitimate sales process, which has resulted in significant costs to shareholders. The company’s amended proxy disclosed that shareholders are expected to bear $6–7 million in deal-related costs, which is 15.8% of TURN’s Q1 net asset value (NAV). Additionally, the firm points out that the NAV has declined by 4.7% through Q1 2025.
The investment firm is urging the board to respect shareholder rights by setting a record date and facilitating a timely vote on the transaction. Marlton also criticizes TURN’s lack of engagement with shareholders, noting the absence of monthly NAV estimates and earnings calls to address shareholder questions in 2025. Investors seeking deeper insights into this situation can access detailed financial metrics, valuation analysis, and expert commentary through InvestingPro’s comprehensive research platform.
Marlton’s letter concludes by calling on TURN’s board and management to take their fiduciary duty seriously and allow shareholders to decide on the Mount Logan transaction without further delay. The firm also plans to file a proxy statement to solicit votes for its slate of director nominees at the 2025 annual meeting of shareholders.
This push for action comes amidst a backdrop of dissatisfaction with TURN’s board’s handling of the sale process, with Marlton Partners advocating for a more transparent and democratic approach. The information in this article is based on a press release statement from Marlton Partners L.P.
In other recent news, Mount Logan Capital reported a robust financial performance in the fourth quarter of 2024, driven by a 19% year-over-year increase in asset management revenue. The company recorded total assets of $1.69 billion and shareholders’ equity of $57.2 million, with basic and diluted earnings per share rising to $0.22 from a loss of $0.69 in 2023. Notably, Mount Logan Capital announced a merger of Logan Ridge and Portman Ridge BDCs and is targeting a transition to a NASDAQ listing by mid-2024. Additionally, the company expanded its corporate credit facility and announced a transformative all-stock combination with 180 Degree Capital, pending regulatory and shareholder approvals. Canaccord Genuity recently initiated research coverage on Mount Logan Capital, potentially increasing its institutional client base. The firm also completed a minority investment in Runway Growth Capital, aiming to leverage its expertise to expand credit investment capabilities. Mount Logan Capital is optimistic about future growth, with plans to expand its credit interval fund and explore new insurance solution agreements.
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