Activist shareholder Plantro Ltd is pushing for a significant board overhaul at Canadian database and property information provider Information Services Corp (ISC) having recently increased its stake in te business, according to a report by Bloomberg.
The report cites unnamed sources familiar with the mater as revealing that Plantro, led by former Dye & Durham Ltd CEO Matthew Proud, is advocating a reduction of ISC’s board from 10 to seven members, arguing that a leaner structure would enhance decision-making. The activist has also proposed four candidates to join the board and is threatening to call a shareholder meeting if ISC does not engage within three weeks.
In addition, Plantro is urging the establishment of a strategic and operations committee composed of its proposed appointees to conduct a comprehensive review of ISC’s operations, strategy, and assets. The committee would aim to identify opportunities to unlock shareholder value, the source said.
The news has already had an impact on ISC’s share price, which spiked to CAD33.44, the highest intraday level in more than four years. Over the past five years, ISC shares have risen approximately 84%, outpacing the S&P/TSX Composite Index, which gained roughly 75% over the same period.
ISC, based in Regina, Saskatchewan, manages critical information such as land titles and business registrations in Western Canada and recently inked a deal to supply a digital records system to Ontario’s environment ministry.
Plantro has a history with the property information sector, having previously held a 30% stake in Dye & Durham. Earlier this year, the activist attempted a mini-tender offer to acquire up to 15% of ISC shares, which the company opposed, calling it “coercive” and unfair to shareholders.
As of June, Plantro disclosed holding 580,863 Class A shares, approximately 3.1% of ISC stock, at CAD30 per share. The firm has continued to accumulate shares and now holds more than 5% of voting rights, according to Bloomberg’s sources.
