Peter Kellogg has a net worth north of $2 billion according to most estimates, and he has been the largest shareholder in a range of publicly tradable companies over the years. In an amended 13D filing with the SEC a few minutes ago, Kellogg reported a stake of 33% in MFC Industrial Ltd (NYSE:MIL), but the real story is embedded in why he filed the amendment.
According to Item 4 of the filing, Kellogg is unhappy with the brokerage services company. Here’s what it had to say:
Recently, the Reporting Persons have become concerned about the corporate governance practices of the Company. As a result, in September 2013, Mr. Kellogg approached Michael Smith, the Chief Executive Officer of the Company, concerning the appointment of an additional independent director to the board of directors of the Company (the “BOARD”).
Except as set forth herein or such as would occur upon completion of any of the actions discussed herein, the Reporting Persons have no present plan or proposal that would relate to or result in any of the matters set forth in subparagraphs (a)–(j) of Item 4 of Schedule 13D. The Reporting Persons may take such future actions with respect to their investment in the Company as they deem appropriate. The Reporting Persons intend to, among other things, closely evaluate the performance of the Company and the value of the Shares, including but not limited to the continued analysis and assessment of the Company’s business, assets, operations, financial condition, capital structure, management and prospects, as well as its corporate governance practices.
The revenue of MFC Industrial increased by 48% in the first half of the year and totaled $376.2 million. However, the net income of the company dropped to $11.2 million, or $0.18 per diluted share, in comparison with $28 million ($0.45 per share) posted for the first six months of last year.