These disclosures are from 13Ds filed with the Securities and Exchange Commission. 13Ds are filed within 10 days of an entity’s attaining more than 5% in any class of a company’s securities. Subsequent changes in holdings or intentions must be reported in amended filings. This material is from Oct. 19 through Oct. 25, 2023. Source: VerityData
Activist Holdings
Southwest Gas Holdings
(SWX)
Corvex Management boosted its position in the energy-infrastructure holding company to 4,153,717 shares. Corvex bought 1,244,696 Southwest Gas Holdings shares from Aug. 24 through Oct. 23 at prices ranging from $57.18 to $63.95 each. Corvex now holds 5.8% of Southwest Gas’ outstanding stock. That figure doesn’t include the effect of cash-settled swaps that add 0.75% economic exposure to Corvex’s position in the gas utility.
Corvex intends to engage Southwest Gas’ board about ways to “unlock value” of Southwest Gas Corp., the firm’s regulated gas unit. Corvex supports the spinoff of Centuri, Southwest Gas Holdings’ infrastructure business, but feels the gas utility is undervalued relative to peers and recent transactions involving such assets.
Further, Corvex believes that a Southwest Gas’ $2 billion capital plan “makes no sense if growth capital results in a market valuation less than cost.” Hence, Corvex will seek to discuss with Southwest Gas ways to bolster returns on capital, additional restructuring, and/or the sale of Southwest Gas Holdings. Southwest Gas shares are down about 8% so far this year.
Increases in Holdings
Algonquin Power & Utilities
(AQN)
Starboard Value raised its interest in the Canada-based electricity utility to 60,939,000 shares. Starboard bought 7,393,000 Algonquin Power shares at prices ranging from $5.30 to $7.56 each from Aug. 30 through Oct. 18. Following the fresh investment, Starboard holds 8.8% of Algonquin Power’s tradable stock. In July, Starboard addressed a letter to Algonquin’s board and management stating they should seek a sale of Algonquin’s renewable-energy unit, with proceeds channeled toward debt reduction and repurchases.
Starboard also feels that Algonquin owns a “hidden gem” in its water utility subsidiary, as such utilities “trade at massive premiums” to either electric or gas counterparts. Given that, Algonquin should trade at higher multiples over rivals that don’t possess water utilities. If that premium doesn’t materialize, Algonquin can sell its water utility, providing additional liquidity to expand proposed repurchases. Shares have lost about a quarter of their value in 2023.
Nano Dimension
(NNDM)
Anson Funds Management acquired 2,002,000 American depositary receipts of the industrial 3-D printing technology firm, pushing its Nano Dimension stake to 7.6%. Anson Funds bought Nano Dimension ADRs from Aug. 25 through Oct. 24 at prices ranging from $2.73 to $2.85 apiece, giving it 17,926,063 ADRs.
Nano Dimension failed in its efforts to acquire
Stratasys
(SSYS) earlier this year and faced its own activist pressure to refurbish its board. In September, shareholders re-elected all of Nano Dimension’s legacy directors, though the CEO and chairman roles were separated. Shares have gained about 15% so far this year.
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