TPG-Axon, beneficial owner of seven percent of the outstanding shares of SandRidge Energy, Inc. (NYSE: SD) (the “Company”), today issued an open letter to SandRidge stockholders urging them to vote the
consent card in favor of its proposals to amend the Company’s bylaws and replace SandRidge’s entire Board of Directors with its slate of highly qualified director nominees.
In the letter TPG-Axon commented: “Strategic blunders, extraordinary spending and poor governance have caused SandRidge stock to decline almost
since the 2007 IPO. This destruction of value is not an accident – it has been a result of the choices made, and actions taken, by Tom Ward and the current Board of Directors.”
TPG-Axon requested that stockholders of record return their signed and dated
consent cards before March 15, 2013, the deadline for submitting consents.
TPG-Axon highlighted that ISS, a respected independent and impartial proxy advisory firm, recommends SandRidge stockholders replace a majority of the Board, stating:
- “The apparent failures of stewardship on this board are legion.”
- “The company’s abrupt, piecemeal approach to corporate strategy and concomitant lack of capital discipline have increasingly limited the company’s financial flexibility, and engendered a deep distrust in the market.”
- “…there is little reason to believe the [incumbent] outside directors who are specially charged with looking out for the interests of unaffiliated shareholders are best equipped to effect the necessary change at SandRidge.”
TPG-Axon noted that it believes if its comprehensive plan to restore and build value is implemented, SandRidge will emerge as a well-capitalized, attractive energy company with significant growth opportunities in its existing Mississippian acreage that should enable stockholders to realize
Net Asset Value (NAV) per share of $10 to $12
. TPG-Axon said that its highly qualified director nominees possess the necessary skills and experience to carry out its strategic plan, helping to restore market confidence and create value for stockholders in the process.
A full copy of TPG-Axon’s plan to restore and build value at SandRidge can be found by clicking the following link:
In the letter, TPG-Axon concluded: “If appropriate steps are not taken to commit to a coherent strategy, restore investor confidence, drastically reduce overhead costs, and lower the cost of capital there is no telling what SandRidge will look like in the future. It is time to take back our Company and facilitate change and capture the dramatic upside we see for stockholders.”