(Reuters) – Activist investor Browning West said on Friday it has built a 4.3% stake in CAE, pushing to have a say in hiring the flight simulator maker’s new top boss.
CAE had said in November its current CEO Marc Parent would leave the Canadian firm after 15 years.
“We urge the Board not to act hastily in its CEO search, but rather to engage with us to collectively recruit the best possible leader,” Browning West said.
The aviation training specialist’s shares have fallen by about 4% in the past five years, underperforming the S&P/TSX Composite Index which has risen roughly 43% in the same period.
Browning said while it “admired CAE’s business and its enviable market position”, the company’s stock has fallen short of expectations.
CAE did not immediately respond to a Reuters request for a comment.
The Montreal-based company also reported a lower second-quarter profit, as supply chain challenges continued to affect the firm.
Formed in 2019, Browning West is an investment firm based in Los Angeles, California and was most recently involved with Canadian apparel maker Gildan and bringing its former CEO back.
(Reporting by Nathan Gomes in Bengaluru; Editing by Krishna Chandra Eluri)
Comments