Matthew Mark’s Jet Capital Sends Another Letter To SunCoke Energy Inc (SXC)

“In the absence of management’s demonstrated ability to use its general partner structure to generate value for shareholders, we continue to expect you to run a process to explore all strategic options to sell SXC to someone who will. But before doing that, we expect capital returns to increase dramatically,” the letter states.

Furthermore, Mark asserts that other shareholders of SunCoke Energy Inc (NYSE:SXC) are not averse to his sentiments. Mark states that he wants capital returns to increase dramatically, and drop downs should be executed. If SunCoke Energy Inc (NYSE:SXC) is unable to grow past those drop downs, it should explore all options, including selling its valuable business model to someone else who will, the letter states.

“Doing nothing is not a sustainable strategy for SXC’s board. Our patience has been exhausted,” Mark declares.

SunCoke Energy Inc (NYSE:SXC) is an independent producer of metallurgical coke, with a market cap of $1.06 billion. The company pays a quarterly dividend of $0.08 for a yield of 1.20%. Shares of SunCoke Energy Inc (NYSE:SXC) have dropped by 20% during the past year and 17% year-to-date. Among the largest shareholders of SunCoke Energy Inc (NYSE:SXC) are Richard Rubin’s Hawkeye Capital and Greg Boland‘s West Face Capital, which hold 2.71 million and 2.59 million shares respectively as of the end of the first quarter.

Disclosure: None