Irenic Capital Management, an activist investor headquartered in New York, has progressively and subtly increased its ownership in FD Technologies, according to market filings. As per the latest update, Irenic now possesses 19.1% of the shares of FD, equivalent to 5.4 million in number. Based on the current share price of FD, which is roughly €18.30, the worth of these shares is close to €99 million.
Considering the magnitude of their stake, it is rare for investors not to have an opinion about the company’s management. This particularly holds true for Irenic, a firm established by Adam Katz and Andy Dodge. Being an activist fund, Irenic invests in companies with the intention of utilizing its shares and voting rights. Occasionally, it leverages its visibility to push management teams to modify their business strategies.
Historically, Irenic has not shied away from being outspoken about its investment ventures. Examples include its public opposition to a major merger proposal by gas producing company Capricorn Energy, urging Wagamama’s manager Ken Hanna to resign, and opposing Rupert Murdoch’s plans to consolidate Fox and NewsCorp.
Irenic’s potential demands from FD, which recently announced a significant restructuring including the division of its marketing arm MRP for a merger with US company Contentgine and possible sell-offs from other departments, are not apparent. Despite this, it’s safe to assume that Irenic would express influential opinions on the subject. No comments were received from FD’s management about their interaction with Irenic since the inception of its stake-buliding operation prior to the publication of this article.
However, FD’s CEO, Seamus Keating hinted in May during a conversation with the Business Post that they interact with Irenic regularly, similar to other major shareholders. He perceived their increasing stake as an approval of FD’s strategies and actions, as evidenced by the recent surge in FD’s share price from just under €12 in March to the present value of €18.30.
Nonetheless, it appears quite improbable that there have been no communications posted from New York in the recent months.