Corbion under shareholder pressure

Amsterdam-based Corbion, which specialises in lactic acid and derivatives, food preservation, functional blends and algae ingredients, has become the latest speciality chemical company to come under pressure from an ‘activist shareholder’ to change its strategy.

Jeffrey Ubben, founder, managing partner and portfolio manager at Inclusive Capital Partners, wrote to Corbion’s supervisory board chairman Mathieu Vrijsen, saying that there is “malaise, concern and apathy” among its public shareholders. San Francisco-based investment firm Inclusive, which was founded in 2020, is the company’s second largest shareholder with a 10% stake.

“The recent share price under-performance has been dramatic, particularly when considering that the company will grow cash flows approximately 15% this year,” Ubben stated. “We have concluded that the company needs to proactively close the meaningful value gap that exists today.” Corbion, he added, is one of the “portfolio companies that offer compelling value optimisation opportunities” in which Inclusive is focused.

In response, the Corbion board and management said that they “value open dialogue with shareholders and welcome their constructive input … We remain focused on delivering long-term value to our shareholders and stakeholders, will continue to take actions to achieve that objective and will consider Inclusive’s suggestions. In a Q3 interim management statement, the company added, it is preparing a restructuring programme in 2024. This includes a full review to drive material improvements in operating expenses, capital programme and working capital.

“Next to this we are conducting a strategic review of Corbion’s position in PLA, developing an Algae Ingredients roadmap 2025-2030 following strong growth prospects and continuing our focus on our high-growth, high-value biomedical business. A broader auction process is under way to divest the non-core emulsifier business in order to maximise value.”