Simon Jessop & Padraic Hapin

LONDON (Reuters] – Clearway Capital, an activist investor, has sent a letter to Glanbia requesting the dissolution of Irish nutrition company Glanbia to boost its valuation to 6 billion euros ($6.33billion), according to Reuters.

North America’s group includes the Glanbia Performance Nutrition unit (GPN), which makes sports nutrition products, brands like SlimFast and Glanbia Nutritionals, (GN), that produces milk and other products.

Clearway stated in a letter dated April 19 that company shares are undervalued. They should have been trading at over 21.08 euro per share. This is almost twice their value as of Tuesday.

The GPN unit had repeatedly issued profit warnings and was cited as a source of persistent underperformance. It also stated that it has a confused corporate structure, made questionable capital allocation decisions, and had frequently sent out profit warnings.

Glanbia stock traded at 55% less than its nearest peers, “despite having assets and brands that we believe are superior to many of our direct competitors,” said the letter.

Glanbia spokeswoman said that the company performed well in 2021 and was well-positioned to achieve its strategic growth goals. The company would also continue engaging with its shareholders.

“Glanbia plc’s clear strategy addresses the key consumer wellness and health trends, as well as being a sustainable global purpose-driven nutrition business.

Clearway presented its plans for the company and asked the board to immediately consider spinning off the GPN unit of the company and dual-listing in New York City and Ireland. Clearway also stated that it would like the board not to dispose of the European cheese joint ventures.

Clearway stated that it expects the next steps to unlock more than 10.88 euro in added value per share.

($1 = 0.9465 euros)