Ann Issues Statement On Engine Capital And Red Alder's Letter

(RTTNews) - Responding to Engine Capital and Red Alder's letter, Women's apparel retailer Ann Inc. (ANN) said that it welcomed open communications with its shareholders and values constructive input toward the goal of enhancing shareholder value.

ANN stated that its board and management team are committed to creating value for all shareholders, and it will continue to take actions to accomplish this goal and position the Company for growth and success.

Earlier today, Engine Capital LP and Red Alder LLC urged the Board of directors of ANN Inc. to retain immediately a nationally-recognized investment bank and establish a special committee of independent directors to explore strategic alternatives to maximize shareholder value, including a sale of the Company.

Engine Capital LP together with its affiliates and Red Alder LLC, which own in excess of 1% of the outstanding shares of ANN, believe that ANN could be worth between $50 and $55 per share to a third-party acquirer, implying a premium of around 40% to the current stock price, assuming the midpoint of its valuation range.

In a letter to ANN's Board, Engine Capital and Red Alder stated that the company is deeply undervalued and that opportunities exist to close the significant valuation gap and unlock shareholder value.