By Anirudh Saligrama
(Reuters) -Activist investor Jeff Ubben's Inclusive Capital Partners has urged OCI NV to explore strategic options, including asset sales, and said the Dutch fertilizer is worth nearly double its 5.54 billion euros ($6.01 billion) market value.
Ubben, in a letter to OCI Executive Chairman Nassef Sawiris, said OCI is significantly undervalued in the public markets and that the Iowa Fertilizer may achieve a substantially higher valuation in a strategic sale.
"As such, we are quite confident that OCI is both misunderstood and under-analyzed ... OCI is worth approximately 90% more than its current stock price," Ubben wrote in the letter seen by Reuters.
The San Francisco-based activist investor currently owns a 5% stake in OCI, according to Refinitiv data.
"OCI welcomes the dialogue with our shareholders, and the merits of the views of our stakeholders, including In-Cap, will be taken into account," the company said in an emailed statement to Reuters.
Inclusive Capital Partners did not immediately respond to a Reuters request for comment.
OCI's CEO Ahmed El-Hoshy told Bloomberg, which first reported about Ubben's letter, that the company plans to undertake a strategic review to address the points raised by the activist investor and "examine all potential suggestions."
In his letter, Ubben also suggested that OCI should consider additional share listings or a sale of Fertiglobe Plc, a joint venture between Abu Dhabi National Oil Co and OCI.
Fertiglobe's successful IPO was a good first step to demonstrate value and unlock further value, OCI should consider additional share listings or a sale, Ubben wrote. Fertiglobe made its Abu Dhabi market debut in 2021.
($1 = 0.9223 euros)