Ann Inc. responds to investors, says focus remains on value

New York – Ann Inc. is publicly responding to an investor presentation held by activist investors Engine Capital and Red Alder on Sept. 15, which urged the company to sell at a substantial premium above current stock price. In a press release, Ann Inc. said its board is “very active and consistently has been, and remains, focused on enhancing shareholder value.”



Ann Inc. also said its board regularly reviews all options and uses a financial advisor to help evaluate them.



“While the board appreciates the input of Engine Capital and Red Alder, none of the analyses contained in their presentation is new to the board,” stated the release. “The conclusions that one draws from these analyses depend heavily on the various assumptions made. The board continues in a very deliberate manner and on an informed basis to consider and determine the courses of action that are in the best interests of all of its shareholders.”



Engine Capital and Red Alder, who collectively own more than 1% of the outstanding shares of Ann Inc., previously stated that the company is “deeply undervalued” and could be worth $50 to $55 a share to an acquirer, or a 33- to 46.5% premium to its stock price as of Aug. 25.



In an updated presentation, the companies told investors that selling Ann Inc. to a competing specialty apparel retailer such as Chico's FAS Inc, Ascena Retail Group, J.Crew or Fast Retailing Co. Ltd. could result in a purchase price of $60 to $65 per share, while a private equity firm such as Golden Gate Partners, Sycamore Partners or Apax Partners would probably pay $50 to $55 per share.



Engine Capital and Red Alder also said they have spoken to a number of Ann Inc. shareholders, and none disagree that the company needs to conduct an immediate strategic alternatives review, including investigation of a possible sale.