New York-based Orange Capital is set to begin a public push for a revamp at Bellatrix Exploration Ltd., the latest in a series of campaigns led by activist shareholders looking to Canada for underperforming companies they can press for change.
Orange, which has been buying Bellatrix shares, is expected to shortly file with the Securities & Exchange Commission to say its stake is bigger than 5 per cent, and that it plans to ask for changes at the Calgary-based natural gas producer, said a person familiar with the situation. The company, with a market capitalization of $1.5-billion (U.S.), trades at a discount to many of its peers. The hedge fund wants Bellatrix to hire a financial adviser to look for strategic alternatives, as well asking the company to look at a sale or initial public offering of some of the so-called midstream assets it owns, such as pipelines and gas plants. Orange is also seeking renewal of the board, better communications with investors and a plan for future outlays of capital.