Hildene urges CIB Marine shareholders to vote for recapitalization proposal

Hildene Capital Management LLC COO Jennifer Nam encouraged fellow shareholders of Brookfield, Wis.-based CIB Marine Bancshares Inc. to vote for the activist investor's recapitalization proposal at the company's 2021 annual meeting of shareholders April 29.

In a letter addressed to shareholders, Nam wrote that the recapitalization proposal accelerates CIB Marine's ability to pay dividends to common shareholders and repurchase common stock; decreases potential common equity dilution by about 40%; and is not dilutive to tangible book value, among other things. Any interpretation of the proposal to the contrary is false and an attempt by CIB Marine to "intentionally mislead" shareholders, Nam said.

The Hildene executive also revealed that a few weeks ago, CIB Marine approached Hildene with a transaction for the investor's preferred shares, an offer which the activist shareholder rejected as it "would have benefited only Hildene," as opposed to all shareholders.

Nam also advised voting down CIB Marine Chairman Mark Elste or Director Ronald Rhoades who both "have continued to lead the company down a value-destructive path."

In late February, Hildene and certain funds it manages nominated John Scannell and Raymond Tellini to CIB Marine's board.

Earlier in March, CIB Marine said it will oppose two shareholder proposals at its upcoming annual meeting, one involving Hildene's director nominations and another that would compel it to make mandatory dividend payments on outstanding preferred stock.