DALLAS--(BUSINESS WIRE)--Park City Capital, LLC, the beneficial owner of approximately 5.7% of the shares of ARI Network Services, Inc. (Nasdaq Capital Market:ARIS), today issued the following statement by its Chief Executive Officer Michael J. Fox regarding ARI Network Services’ second quarter fiscal 2017 earnings conference call scheduled to be held this afternoon:
“We are looking forward to ARI’s conference call this afternoon. Below are three questions we believe all shareholders would like management to address on the call.
|1.||Has the board hired an investment banking firm?|
|2.||Are you returning all calls from private equity funds and other interested buyers?|
Management made it clear over the past several months that it opposes Park City Capital’s plan to maximize value for all shareholders. However, when I met privately with Roy Olivier and Will Luden following ARI’s annual meeting on January 5, 2017, Mr. Olivier implied that his plan is to stimulate a bid from one party and to run a process off of that bid. In addition, Mr. Olivier said that he didn’t disagree with anything I said in my statement at the annual meeting. If management’s strategy is to stimulate a bid from one buyer and then run a process off of that bid, we believe its strategy is flawed unless job security for management is more important than maximizing value for all shareholders. If management engages with one potential buyer, it will likely be difficult for management to maximize the price as the potential buyer has all the leverage. We continue to be disappointed that apparently the board refuses to run a robust process that would likely maximize value for all shareholders. We continue to believe that a robust process would yield a transaction between $8 and $10 per share. We believe management’s implied strategy will likely yield a bid of $7 to $8 per share and will likely include a large break-up fee that would likely deter any additional bids that would maximize value for all shareholders. Is management only interested in engaging with parties that will preserve managements’ jobs and is that more important to management than maximizing value for all shareholders?”
About Park City Capital
Park City Capital, LLC is a private investment firm located in Dallas, TX. The firm manages private investment funds exclusively for qualified individuals, family offices and institutional investors. Park City Capital was founded in 2008 by Michael Fox.