Huntsman Corp Stock Price, News & Analysis

Starboard Value LP, a major shareholder of Huntsman Corporation (NYSE: HUN), with an 8.8% stake, has released a presentation titled Transforming Huntsman Corporation. The presentation critiques Huntsman's history of poor financial performance, governance issues, and unmet shareholder commitments. Starboard highlights a significant underperformance of ~562% against peers since 2005 and calls for an election of its slate of qualified director nominees at the upcoming shareholder meeting to improve accountability and performance.

Huntsman Corporation (NYSE: HUN) has sent a letter to shareholders ahead of its Annual Meeting on March 25, 2022, advocating for the election of its board nominees via the WHITE proxy card. The letter emphasizes Huntsman's recent record performance, including a 45% rise in Adjusted EBITDA to $349 million. It critiques Starboard's proposed slate of nominees, asserting they lack relevant industry experience and threaten Huntsman's strategic trajectory, which has yielded a total shareholder return of ~98% over five years. Huntsman urges shareholders to reject Starboard's proposals to protect long-term value.

Huntsman Corporation (NYSE: HUN) filed definitive proxy materials for its Annual Meeting of Stockholders on March 25, 2022. Stockholders as of February 1, 2022, can vote. Key highlights include record financial results in 2021, with adjusted EBITDA of $349 million and free cash flow of $698 million in Q4, 45% and 691% increases year-over-year, respectively. Huntsman has engaged with activist investor Starboard since September 2021, asserting that their proxy campaign risks value destruction. The Board has been refreshed, appointing eight new independent directors since 2018, enhancing oversight and governance.

On February 17, 2022, Starboard Value LP, holding approximately 8.6% of Huntsman Corporation's shares, expressed concerns in a letter to the company regarding repeated inquiries about their nomination of four independent director candidates for the upcoming Annual Meeting. Starboard asserts that it has thoroughly disclosed all information related to its nominees and criticizes Huntsman's Board for continued questioning. Starboard emphasizes the need for a reconstituted Board to enhance accountability and shareholder value.

Huntsman Corporation reported strong fourth quarter 2021 results, achieving $2,307 million in revenues and net income of $607 million, a significant increase from $360 million in Q4 2020. Adjusted diluted EPS rose to $0.95 from $0.51. The company experienced a 45% increase in adjusted EBITDA, reaching $349 million. Free cash flow for the quarter was $698 million, supported by a $332.5 million arbitration settlement. A 13% dividend increase was also announced, reflecting a commitment to shareholder returns. Huntsman anticipates further growth in 2022.

Huntsman Corporation (NYSE: HUN) has declared a $0.2125 per share cash dividend, marking a 13% increase compared to the previous dividend. The dividend is scheduled for payment on March 31, 2022, for stockholders on record as of March 15, 2022. Chairman and CEO Peter Huntsman confirmed that this decision reflects the company’s strong business results and outlook, emphasizing their commitment to providing value to shareholders.

Huntsman Corporation (NYSE: HUN) filed its preliminary proxy materials with the SEC for the Annual Meeting of Stockholders on March 25, 2022. The Board has completed a refreshment plan since 2017, appointing eight new independent directors, including three in January 2022. Huntsman has engaged with Starboard to avoid a proxy contest, but faced challenges in collaboration. The company believes that its strategic initiatives align with suggestions from Starboard, which include a 15% dividend increase in April 2021 and a $1 billion share repurchase authorization. Huntsman remains committed to shareholder interests.

Huntsman Corporation (NYSE: HUN) has announced a series of strategic initiatives aimed at enhancing shareholder value. These include initiating a strategic review of the Textile Effects Division, authorizing $1 billion in share repurchases over the next three years, implementing a multi-year incentive compensation program, and completing a Board refreshment process with independent directors. The company has divested around 40% of its businesses, generating significant shareholder returns, outperforming the S&P 500.

Starboard Value LP, owning approximately 8.6% of Huntsman Corporation (HUN), has nominated four director candidates for the 2022 Annual Meeting. The investment firm cites opportunities for enhancing Huntsman's operational performance and capital allocation to unlock shareholder value. Starboard criticizes the company's historical underperformance and lack of execution on financial targets, highlighting a $350 million decline in Adjusted EBITDA since 2014. The firm believes that fresh board representation is essential for restoring investor confidence and improving Huntsman's valuation.