Obrem Capital Discloses 5.1% Stake In MDS (MDZ), Wants Unit Sale/Spinoff and Share Repurchases
In a 13D filing on MDS Inc. (NYSE: MDZ), Obrem Capital disclosed a 5.1% stake (6.2M shares) in the company. Obrem plans to talk with management and the board and plans to recommend a spin-off or sale of one or several of the company's business units. Obrem also intends to recommend a review of the company's capital structure and a significant stock buyback plan.
From the filing: "The Reporting Persons intend to communicate with the management and board of directors of the Issuer regarding the Issuer’s business and other strategic and financial considerations, whereby the Reporting Persons intend to recommend certain actions to the Issuer in order to increase shareholder value. Specifically, the Reporting Persons believe that significant shareholder value could be created through the spin-off or sale of one or several of the Issuer’s business units and they intend to recommend that the Issuer formally hire financial advisors to explore such strategic alternatives. Additionally, the Reporting Persons intend to recommend that the Issuer review its capital structure and pursue a significant share repurchase program."