The investor that successfully campaigned against DX Group's former executive team last year has called for Wincanton to sell one of its two divisions after buying a 2% stake in the 3PL.
Gatemore Capital Management made headlines last year as a DX Group shareholder, when it demanded the removal of then- board chairman Bob Holt and non-executive director Paul Murray after the operator's share price plummetd.
It later bought more shares in the business, making it the group's majority shareholder.
Gatemore Capital Management has now bought 2% of Wincanton, and MT has had sight of a letter it sent to investors outlining the case for the sale of one of the transport giant's two divisions - Retail & Consumer and Industrial Transport.
Managing partner Liad Meidar said that selling one of the Wincanton divisions would fund its pension deficit, which sat at £69m at the end of last September.
Meidar wrote in the letter: "We have engaged in constructive discussions with Wincanton’s management and, in private, are calling for the company to conduct a strategic review, sell one of its two divisions, fund the pension, and refocus the business.”
Meidar argues in the letter that the two divisions of the business are "not are natural fit, and in fact operate under different economic models".
While Retail & Consumer operates on an asset-light model based around open book contracts, he said, Industrial Transport is asset-heavy and closed-book contract based.
Gatemore suggested that to sell one of the divisions could potentially raise its monetary worth by 88%, suggesting it is currently undervalued as a business, as well as allow the business to refocus on just one operation.
However, market analyst Liberum's transport team said that while it agreed Wincanton was undervalued, it did not see breaking up the group as the best option.
It said that separating the Retail and Consumer and Industrial and Transport arms of the business would be "legally and operationally complex". It added that benefits from the current operational synergies would also be lost in any separation.
Liberum added that it struggled to see "why a buyer interested in one division would not be interested in buying the whole business instead".
In its letter to investors, Gatemore said it had "engaged in constructive discussions with Wincanton's management".
It continued that the firm hoped to "continue to foster a productive relationship with Management" and would be discussing its ideas with major shareholders in due course.
Wincanton declined to comment but said it had responded to Gatemore directly.
