Oplink Communications, Inc (OPLK): Engaged Capital Raises Activist Stake & Sends Letter to Shareholders

As a new filing with the Securities and Exchange Commission, Glenn Welling‘s Engaged Capital reported slightly increasing its stake Oplink Communications, Inc (NASDAQ:OPLK) and revealed a letter sent to the company’s shareholders. Engaged owns currently around 913,500 shares of Oplink, the activist stake being equal to 5.4% of the company’s common stock. Previously the fund held 863,500 shares, representing 4.7% of the company.

Engaged went activist on Oplink Communications, Inc (NASDAQ:OPLK) earlier this year, after forming an activist group, with another investor, Voce Capital. Voce owns around 342,700 shares of the company, equal to 2% of the outstanding stock. Back in June when investors formed their group, both Mr. Welling and the manager of Voce Capital Daniel Plants agreed to discuss Oplink’s operating results and costs with the management and to find ways to increase the shareholder value of the company. At the end of September, Engaged Capital announced that it has nominated two directors to be elected to the company’s board at the next shareholder meeting.

In their latest letter to shareholders, Engaged and Voce expressed their disappointment with the board not taking any steps regarding the next annual shareholder meeting, even though over a year has passed since the previous meeting. The letter also added that the board was required last week to file a 10-K form with the SEC to aknowledge that it “no longer expects[s] to file [its] definitive proxy statement” within 120 days of the end of its fiscal year.

“The Board’s abdication of such an essential duty is indefensible and shameful. […] It is our fundamental right to express our opinion, through the exercise of the shareholder franchise at the Annual Meeting, on the job that our Board is doing on our behalf. Delaying the director electoral process is a dereliction of the Board’s fiduciary duty and a violation of our rights as shareholders” the investors said in their letter.

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