One of the biggest shareholders of Chattanooga-based tow-truck maker Miller Industries on Thursday called for the company’s board to explore strategic alternatives, including a sale of the business.
But the company’s lead independent director responded, saying the board believes execution of its current plan and growth strategy is “the best means to maximize long-term shareholder value and drive continued positive change.”
Advisory Research Inc. and its affiliates, which own about 3.5% of Miller’s outstanding shares, said in a letter released publicly the company’s stock trades at a sizeable public market discount due to operational and strategic lapses.
“Having been invested since August 2022, we have spent a great deal of time, energy and resources analyzing Miller’s operational and financial performance,” the letter said. “Our diligence has led us to conclude that Miller … can substantially improve its per share earnings power.”
As a result, the letter said Advisory Research is calling on the board to form an independent committee to conduct a strategic review that will develop a credible long-term plan to be compared to alternative strategies, including a sale at a meaningful premium to present value.