In a proxy statement filed with the Securities and Exchange Commission last week, NNS Holding director Nassif Sawiris blasted Dallas-based TXI for poor operating performance and indicated plans to encourage other shareholders to withhold votes for directors Sam Coats and Thomas Ransdell, both up for re-election at the company’s October 21 annual meeting
Sources: NNS Holding, Cayman Islands; Texas Industries SEC filings
In a proxy statement filed with the Securities and Exchange Commission last week, NNS Holding director Nassef Sawiris blasted Dallas-based TXI for poor operating performance and indicated plans to encourage other shareholders to withhold votes for directors Sam Coats and Thomas Ransdell, both up for re-election at the company’s October 21 annual meeting. The third-richest man in Egypt, Sawiris owns 14.9 percent of TXI’s outstanding shares, making him the company’s largest stockholder.
He asserts in a letter to shareholders, “I strongly believe that no stockholder should be expected to accept operating performance as lackluster as TXI’s has been over the past year. In its most recent earnings report, the company’s net income was down 40 percent from the same period last year. Furthermore, over the last 12 months, the company has underperformed its peer group by approximately 35 percent and is currently trading near its 52-week low of $26.26 and less than 40 percent of the 52-week high of $81.48.”
Sawiris goes on to say he is convinced that TXI has a chance to restore investor confidence and create value for all stockholders, “but only if it addresses the challenges facing the company head-on.” He adds that NNS Holding has attempted to increase its investment in the company to more than 15 percent and secure representation on the board of directors (“[W]hat is desperately needed at TXI is a new voice in the boardroom.”), a proposal the board initially rejected.
Sawiris began investing in the company back in 2006 and became TXI’s largest shareholder in July 2007. He is also the CEO of Egypt’s Orascom Cement, which Lafarge Group acquired late last year for $12.9 billion.