NEW YORK, Aug. 20, 2019 /PRNewswire/ -- Gilead Capital LP
("Gilead Capital"), a long-term shareholder of Monotype Imaging
Holdings Inc. (NASDAQ: TYPE) ("Monotype" or the "Company"), today
sent a letter to the Company's Board of Directors (the "Board")
expressing its concerns regarding the proposed sale of Monotype to
the private equity firm HGGC for $19.85 per share. The letter conveys
that:
- The inadequacy of the $19.85
price is evident from: (i) the Board's buyback of minority shares
in the same quarter at the same $19.85 price; (ii) the bottom-quartile "premium"
on a stock price near its six-year low; and (iii) the significant
recent earnings beat.
- Gilead Capital believes that the Company is worth at least
$30 per share.
- The Board's lack of transparency with respect to the deal and
the Company's second-quarter earnings raises questions about
whether it engaged in a rigorous process to secure a fair price for
shareholders.
- Gilead Capital currently intends to vote against the
transaction.
Gilead Capital calls on the Board to inform shareholders about
the Company's recent business performance and its rationale for
proposing a sale of Company at the same price it executed its most
recent buybacks so that all shareholders can make a fully informed
vote.
The full text of the letter can be found here.
About Gilead Capital LP
Gilead Capital LP is an investment adviser focused on long-term
investments in high-quality public small-cap companies in
North America, Europe, and Australia. Gilead Capital pursues a Leadership
Investing strategy, supporting its portfolio companies by
constructively engaging with management teams and boards of
directors to elevate governance and enhance long-term value for the
benefit of all shareholders.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/gilead-capital-sends-open-letter-to-board-of-monotype-imaging-holdings-opposing-sale-to-hggc-300904288.html
SOURCE Gilead Capital LP