According to a recent 13D filing with the US SEC, Arnaud Ajdler‘s Engine Capital has signed a settlement agreement with Sparton Corp (NYSE:SPA), upon which, among the other things, the company granted to increase the size of the board to 8 directors and appoint Alan L. Bazaar and John A. Janitz as independent members to the board effective immediately. Engine Capital, on the other hand, agreed to vote its shares in support of all the Sparton Corp’s nominees that will include Bazaar, Janitz and Messrs at the company’s 2016 annual meeting of shareholders, and not to nominate any person for election and not to acquire more than 9.9% of the company’s outstanding shares. Arnaud Ajdler’s Engine Capital owns 367,787 common shares of Sparton Corp (NYSE:SPA), which account for 3.7% of the company’s outstanding stock.
Sparton Corporation is a company that, together with its subsidiaries, provides electromechanical devices and serves a variety of markets such as military and aerospace, medical, and industrial to name a few, through two business sectors – Engineered Components & Products and Manufacturing & Design Services (MDS). Over the past 12 months, the company’s shares have dropped by 20.58%. For the third quarter of fiscal 2016, the company reported earnings per share of 0.34 beating the estimates of $0.32, and a revenue of $102.17 million, missing the estimates of $105.16 million.
There was a decrease in the number of hedge funds supporting Sparton Corp (NYSE:SPA), and 7 investors from Insider Monkey’s database, reported long positions in this stock as of the end of 2015, compared to 6 hedge funds a quarter earlier. The most valuable position was reported by Ed Beddow and William Tichy’s Beddow Capital Management, valued $11.4 million, and the second biggest position was held by Jim Simons’ Renaissance Technologies, worth around $5.6 million in stock. Other investors that were bullish on this stock encompass Israel Englander’s Millennium Management, and D. E. Shaw’s D E Shaw.
You can access the original SEC filing by clicking here.
Ownership Summary Table
|Name||Sole Voting Power||Shared Voting Power||Sole Dispositive Power||Shared Dispositive Power||Aggregate Amount Owned Power||Percent of Class|
|ENGINE JET CAPITAL||47,468||311,589||47,468||311,589||47,468||less than 1%|
|ENGINE CAPITAL MANAGEMENT||367,787||311,589||367,787||311,589||367,787||3.7%|
|NORWOOD CAPITAL PARTNERS||7,524||7,524||311,589||3.2%|
|NORWOOD INVESTMENT PARTNERS||311,589||3.2%|
|NORWOOD INVESTMENT PARTNERS GP||311,589||3.2%|
|CHARLES H. HOEVELER||319,113||3.2%|
Page 1 of 17 – SEC Filing
(Name, Address and Telephone Number of Person