Capital Urges Argo Group To Consider Sale
Capital Returns Management, LLC sent a letter to the Board of Directors of Argo Group International Holdings, Ltd. “urging the Board to commence a strategic alternatives process and objectively consider a sale of the full Company.”
A statement from the company said, “Capital Returns Management, LLC [together with its affiliates, "Capital Returns], one of the largest shareholders of Argo Group International Holdings, Ltd. [Argo], sent a letter to the Company’s Board of Directors today urging the Board to commence a strategic alternatives process and objectively consider a sale of the full Company.
“In the letter [PDF], Capital Returns expressed the belief that Argo has an exceptional U.S. specialty business whose results are both restricted by capital constraints and obscured by Argo’s lackluster international businesses. In the letter, Capital Returns concludes that “exploring the sale of the entire Company is the optimal and necessary next step to maximize shareholder value.”
“Capital Returns believes that such a sale could yield a price of $80 per Argo share, or more, based on a sum-of-the-parts analysis and comparable trading multiples.”
