Aug 10 (Reuters) - Activist investor Engine Capital has
built a stake in Avantor ( AVTR ) and plans to push the
life-sciences company to sell itself or make other changes, the
Wall Street Journal reported on Sunday, citing people familiar
with the matter.
Engine could reveal its roughly 3% stake in Avantor ( AVTR ) on
Monday, the newspaper reported, adding that the activist
investor thinks the entire company could sell for between $17
and $19 per share.
Reuters could not immediately confirm the report. Avantor ( AVTR )
and Engine Capital did not immediately respond to a request for
comment outside regular business hours.
Avantor ( AVTR ) has a market value of $7.84 billion, and its shares
have fallen by more than 45% this year to about $11.5, as of
Friday's close, according to LSEG data.
The company said in its first-quarter earnings report in
April that it has faced a reduction in demand, particularly in
the government and education market, after changes in the
government policy.
These include the administration blocking funding for a
swathe of public-health programs run by the Centers for Disease
Control and Prevention.
Engine thinks Avantor ( AVTR ) shares could trade as high as $26 by
the end of 2027, the WSJ report said.
The investment firm believes that Radnor, Pennsylvania-based
Avantor ( AVTR ) should either pursue an immediate sale or implement
changes such as cost cuts, divesting non-core assets, board
refresh or increasing stock buybacks, according to the report.