Engine Capital LP, a shareholder owning approximately 9.8% of Civeo Corporation's outstanding shares, sent a letter to the company's Board of Directors on March 18, 2025. The letter asserts that Civeo is significantly undervalued in the public market, trading at approximately 3.6x EV to 2025 EBITDA multiple.
Engine Capital believes the Board should take immediate action, including eliminating the dividend and aggressively repurchasing shares. The activist investor also recommended targeting a 1.75x leverage ratio and significantly reducing costs to potentially deliver approximately $47 per share for shareholders in a standalone scenario.
The letter also highlighted that a sale of Civeo could provide an alternate path to delivering significant value. This public call for action puts pressure on Civeo's management and board to address shareholder concerns regarding valuation and capital allocation.
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