Crescent Point Energy is being targeted by an activist investor that's lambasting the company's management and threatening to wage a proxy fight.
Cation Capital went public with its grievances early Monday, saying it plans to nominate four candidates for Crescent Point's board of directors at the company's annual meeting next month.
"Cation was compelled to take this action given the significant destruction of shareholder value and the abject failure of current leadership across all aspects of the company including capital allocation, shareholder alignment and basic principles of good corporate governance," Cation said in a press release.
The Calgary-based investment firm said it decided to go public after talks with a special committee of Crescent Point directors reached an impasse.
"We believe Crescent Point’s assets have tremendous long-term potential and the ability to create significant value for all shareholders. However, the current board seems incapable of implementing a cohesive strategy to create value," said Cation Capital President Sandy Edmonstone in a press release.
Crescent Point said in a press release Monday it “respects and values” feedback from shareholders, while making it clear it’s not impressed by Cation’s approach.
“Cation seems intent on disrupting the company’s progress with a self-interested effort to achieve short-term benefits,” the company said in its release, which noted Cation was incorporated on March 29.
“A last-minute demand for four nominee directors from an entity which, with its nominees, holds only 0.3 per cent of the outstanding common shares and appears to have been created for the sole purpose of creating conflict and havoc, is unreasonable and reckless.”
In its release, Cation expressed frustration with Crescent Point’s cost management and underperformance over the last three years as compared to the TSX energy subgroup and the broader Composite Index.
Cation Capital’s nominees to Crescent Point’s board of directors include former Potash Corporation of Saskatchewan Chairman Dallas Howe, veteran energy industry director Herbert Pinder, former GMP investment banker Thomas Budd and Edmonstone.
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