Orbis Announces Shareholding of Approximately 2.8% of Arconic Shares Outstanding

Orbis announces intention to vote for Elliott’s slate of nominees to Arconic’s board

SAN FRANCISCO--(BUSINESS WIRE)-- Orbis Investment Management Limited (“Orbis”), a global investment firm with $30 billion of assets under management, announced today that it intends to vote in favour of Elliott Associates’ slate of independent nominees to join the board of directors of Arconic, Inc. Orbis, through its family of funds, currently owns approximately 12.4 million shares of Arconic, or 2.8% of shares outstanding.

Orbis invests with a long-term, fundamental approach and has been a shareholder of Arconic and its predecessor company, Alcoa Inc. since 2013. As a top shareholder, Orbis has spent significant time and resources to understand Alcoa’s businesses and has regularly interacted with senior management. Orbis invested in Alcoa, and is currently invested in Arconic, because Orbis believes Arconic’s market valuation is substantially below the company’s long-term intrinsic value.

Orbis does not believe Arconic can reflect its true value under the leadership of its current Chairman and CEO, Dr. Klaus Kleinfeld. During his tenure, shareholders have witnessed a track record of poor execution, value-destructive capital allocation, undisciplined spending, mismanagement of investor expectations, and extraordinary share price under-performance.

“Regrettably, independent members of the Arconic board prefer to prioritize personal loyalty to Dr. Kleinfeld over their responsibility to shareholders,” said Adam R. Karr, Partner at Orbis. “Independent members of this board, who own less than 0.1% of outstanding shares, continue to disregard the overwhelming publicly-expressed desire for leadership change from the company’s largest long-term owners, including Orbis.”

Notes to Editors:

Orbis Investment Management Limited was founded in 1989 and manages over $30 billion across a range of long-only equity and absolute return strategies using a fundamental, long-term and contrarian investment philosophy. Its flagship Global Equity Fund has outperformed its benchmark by approximately 6% per annum net of fees over nearly 25 years. All fee structures are performance-based and the firm’s employees, management and owners are significant investors in the Orbis Funds. Headquartered in Bermuda, Orbis employs over 300 professionals in nine global locations. www.orbis.com

View source version on businesswire.com: http://www.businesswire.com/news/home/20170303005498/en/

Media enquiries for Orbis:
Hewes Communications
Tucker Hewes, 212-207-9451
[email protected]

Source: Orbis Investment Management Limited

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