Another major shareholder tells SEACOR Marine board “the time has come”

Within days of the largest shareholder in SEACOR Marine Holdings Inc. [NYSE:SMH] urging its board to explore strategic alternatives, another major shareholder is calling on the board to immediately initiate a monetization process of the company’s fleet aimed at maximizing shareholder value.

In a letter to the board titled “The time has come,” Yoav Saffar, founder and CIO, of Smartlenses Capital LLC highlights that despite one of the strongest offshore support vessel markets in years, SEACOR Marine continues to trade at a substantial discount to the intrinsic value of its fleet and other assets. Saffar believes that while management successfully navigated one of the industry’s most difficult downturns, the company’s current capital structure and limited scale have constrained its ability to translate favorable market conditions into shareholder returns.

Saffar, who, with his investors, owns approximately 3.5% of the company’s outstanding shares outlines his belief that the company’s young premium platform supply vessel fleet, specialized fast support vessel fleet and Middle East liftboats represent valuable assets that are not adequately reflected in the company’s current market valuation. He references third-party vessel valuations, recent offshore vessel sales and multi-year charter contracts as evidence that the underlying asset value materially exceeds the current share price.

Saffar believes that improving offshore market fundamentals, rising day rates and recent vessel transactions have created an attractive environment for the company to pursue strategic alternatives that could unlock significant value for shareholders. The letter urges the board to promptly evaluate strategic alternatives, including monetizing selected assets and exploring opportunities to maximize value for all shareholders while market conditions remain favorable.

Read the full letter.