Activist Investor Browning West Builds Stake in CAE

(Reuters) – Activist investor Browning West announced on Friday that it has acquired a 4.3% stake in CAE (NYSE:CAE), seeking to influence the selection of the flight simulator maker's new CEO.

In November, CAE disclosed that its current CEO, Marc Parent, would be departing after 15 years in the role.

"We urge the Board not to act hastily in its CEO search, but rather to engage with us to collectively recruit the best possible leader," Browning West stated.

Shares of the aviation training specialist have dropped approximately 4% over the past five years, lagging behind the S&P/TSX Composite Index, which has increased roughly 43% in the same timeframe.

Browning West expressed admiration for CAE's business and its strong market position but noted that the company's stock performance has been disappointing.

CAE did not immediately respond to a request for comment from Reuters.

Additionally, the Montreal-based company reported a decline in profit for the second quarter, as it continues to face supply chain challenges.

Founded in 2019, Browning West is a Los Angeles-based investment firm that has previously engaged with Canadian apparel maker Gildan and facilitated the return of its former CEO.