PrimeStone Capital LLP: Letter to Brenntag Shareholders

LONDON, UK / ACCESSWIRE / June 16, 2023 / PrimeStone Capital LLP, a shareholder holding more than 2% of Brenntag SE (ISIN DE000A1DAHH0, WKN A1DAHH), has today published the following letter to Brenntag SE shareholders:

Dear Fellow Shareholders,

Over the last few months, we have had an opportunity to engage with many of you to discuss our concerns regarding Brenntag's underperformance, strategy, capital allocation and governance. We want to express our sincere gratitude for your thoughtful engagement, challenges and support throughout this period

For the first time in German corporate history, both ISS and Glass Lewis endorsed all of the dissidents' candidates and recommended against all of the company's nominees. Yesterday, the latter received the lowest level of support of any DAX company in the recent past (being opposed by close to 40% of shareholders compared to an average of 3%). Some of you who have eventually chosen to support the company's candidates despite sharing our assessment of the situation would have preferred a negotiated solution that the company deemed unpractical. Others have hesitated until the last few days and have finally decided to give the company another chance. We appreciate your serious consideration of the alternative.

The endorsement of our independent candidates by so many of you and by the two largest governance institutions in the world reveals a deep frustration among Brenntag's shareholders and a demand for (i) an improved overall governance with a strengthened and more open Supervisory Board, (ii) an accelerated pace of improvement at Brenntag Specialties after years of promises and in contrast with the recent results, and (iii) a serious fact-based consideration of the separation of Essentials and Specialties with a heightened sense of urgency. We hope the Supervisory Board has heard this message from shareholders and understands that the status quo is untenable.

We look forward to Brenntag's announcements on "concrete decisions for the operating model of both divisions" before the summer break and to its Capital Markets Day in the Fall. We remain committed to working constructively with the Supervisory Board and management to create long-term sustainable value at Brenntag.

Yours sincerely,

PrimeStone

SOURCE: Charles Barker Corporate Communications GmbH

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