Oaktree pleased with Ranger developments, still urges shareholders to elect its nominees

The firm, which owns 19% of Ranger, said it was “pleased” that the “significant” shareholder support for board change had led Ares to withdraw their proposal, and the board to come to the conclusion that realising the assets of Ranger in an orderly manner was the “best way” to protect shareholder value.

“Oaktree believes that, now more than ever, new directors are needed to maximise shareholder value in the wind-down,” the letter read.

“Even the board has conceded that it will need to appoint additional independent non-executive directors to oversee the wind-down ‘following consultation with shareholders’.”

Oaktree urged the board to “put the interest of shareholders first” and “do the right thing” by immediately entering into discussion with Oaktree to add Oaktree’s nominees, instead of continuing with what it called a “costly, distracting and misguided” effort to block the nominees.

Its nominees, Dominik Dolenec and Greg Share, would provide “much-needed” additional oversight and experience to the complex process, Oaktree explained.

Share and Dolenec had a combined 40 years of experience in specialty finance, restructuring, and litigation, it claimed, which it said would be critical to overseeing an effective and efficient wind-down that maximised shareholder returns.

“With the right decision finally having been made to wind down and the voice of shareholders recognised, the most efficient way to ensure success is to elect our nominees at the upcoming meeting,” said Oaktree value equities managing director and portfolio manager Patrick McCaney.

“Shareholders now have the opportunity to elect new, independent and qualified nominees to the board of directors, and can do so in a transparent manner without relying on the existing Ranger board.”

The annual general meeting was set down for 19 June.