Azenta makes board changes, takes other steps; avoids proxy fight with activist

Azenta

13/11/2023 22:04

By Svea Herbst-Bayliss
       NEW YORK, Nov 13 (Reuters) - Azenta  AZTA.O  on Monday
announced strong earnings as well as changes to its board and
said that activist investor Politan Capital Management, one of
the biotechnology company's biggest shareholders, will not be
pushing for seats this year.
    Azenta shares jumped nearly 12% in after-hours trading. The
stock closed the regular session up 0.6% at $47.81.
    Two new directors will join the board while two current
directors will retire, the company said, adding that it will
make an additional $500 million in share repurchases in fiscal
2024 and will focus on "smaller tuck-in acquisitions." Revenue
grew 25% in the fiscal fourth quarter, it added.
    In return, Politan, which owned 7.5% of the company on Nov.
1, withdrew its notice to nominate director candidates for
election, erasing fears that the hedge fund might launch a proxy
fight this year.
    Azenta and Politan had been holding private discussions for
weeks to find ways of increasing shareholder value, people
familiar with the talks said. Azenta's stock price has tumbled
nearly 19% since January. In after-hours trading the share price
climbed to $54.92 before falling back to trade at $49.80.
    Earlier this month, Politan had nominated directors to the
board, taking a preliminary step to lay the groundwork for a
possible proxy fight. But on Monday, the company said it has
withdrawn its notice.
    "We are encouraged by the Company's recent operational
performance, its commitment to increased capital returns, its
focus on smaller tuck-in acquisitions, the CFO transition
process that led to the addition of Herman Cueto, and the
changes the Company is making to its Board," said Quentin
Koffey, who launched Politan roughly two years ago.
    Previously, Politan pushed for changes at managed care
company Centene  CNC.N  and medical devices maker Masimo
 MASI.O .

 (Reporting by Svea Herbst-Bayliss in New York
Editing by Matthew Lewis)
 ((svea.herbst@thomsonreuters.com; +617 233 2138; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))