Activist Shareholders Seek To Replace Four Board Seats at Miranda Technologies

Posted by Joe Zaller
Dec 15 2011

Two major shareholders of broadcast infrastructure and playout technology provider Miranda Technologies have requisitioned a meeting of the shareholders of Miranda to replace four of the existing directors of Miranda with four new independent directors .

The request was made by JEC Capital Partners (JEC) and JMB Capital Partners, who own a 7.1% and 3.1% stake in Miranda respectively.

The request was made public through a press release issued by JEC which says:

“Miranda’s current Board of Directors has been unchanged since 2006 and the independent directors own virtually no shares in the Company (less than 0.3%). From December 31, 2005 through December 12, 2011, Miranda’s market capitalization has decreased from $325M to $188M, over 42%. The current Board has approved two major acquisitions that were dilutive to shareholder value. During the past 12 months, JEC Capital has made numerous attempts to engage the current Board in constructive dialogue regarding strategic actions to maximize shareholder value, without success. While no single director is solely responsible for the loss in shareholder value, the Board as a whole should bear responsibility for the inability to effectively advance the interests of shareholders.

“JEC Capital continues to be encouraged by the financial and operational performance of Miranda and we are fully supportive of the Company’s management. Miranda’s directors should have the best interests of all of Miranda’s shareholders as their first priority and aggressively explore all value-creation opportunities, including a strategic review of Miranda’s assets to determine the fair market value of the company.”

Miranda responded with its own press release that says it is reviewing this requisition and will make further announcements regarding its response in due course.

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Related Content:

JEC Press Release: Requisition for Meeting of Shareholders of Miranda Technologies Inc.

Miranda Press Release: Miranda Acknowledges Requisition of Special Meeting

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