D.E. Shaw calls for Air Products' board overhaul, limits on capex
Oct 10 (Reuters) -U.S. investor D.E. Shaw has called for changes at Air Products and Chemicals, including a clear CEO succession plan, to address the underperformance in shares and deficiencies in governance and capital allocation policies at the industrial gas maker.
D.E. Shaw, which has more than $60 billion in investment capital, holds a "significant economic position" in Air Products APD.N, according to its letter to the company on Thursday.
The investor group also proposed that the company should de-risk existing large projects by signing offtake agreements and limit annual capex to $2 billion to $2.5 billion beyond 2026.
Shares of Air Products have risen more than 15% so far this year.
However, D.E. Shaw said Air Products' total shareholder return has significantly lagged relevant peers over numerous time horizons, including underperforming its industrial gas peers Linde LIN.O and Air Liquide AIRP.PA over the last five years.
The investor group has also called for a need to refresh the company's board.
Air Products CEO Seifi Ghasemi, 80, ranks among the oldest chief executives at S&P 500 companies and has indicated he would like to stay on.
In a separate letter to the company in September, D.E. Shaw had noted that "the company's clean hydrogen strategy led to the destruction of roughly $15 billion of equity value within the core industrial gas business."
Air Products did not respond to a Reuters request for comment.
Earlier this month, activist investor Mantle Ridge had also said it wanted the industrial gas manufacturer to cut costs, focus on its core businesses and pave the path for a new leader.
Reporting by Seher Dareen in Bengaluru; Editing by Shilpi Majumdar
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