International Wireless Service Provider
Extreme Value Creation: Control Acquisition, Business Expansion & Growth
Bob Shingler was serving on the Board of a European wireless communications provider which was a joint venture of four different international companies. The joint venture was not going well. The company was underperforming in the marketplace, and the investors all had different views on how to move forward with the business. Mr. Shingler was Chairman of the Management Committee of the Board and was actively working with the management team to improve the performance of the business. He could readily see how the lack of consensus between the joint venture partners was leading to uncertainty and confusion in the management ranks.
Mr. Shingler brokered a deal between the two largest shareholders to purchase the shares of the smaller investors and form an equal partnership. He then negotiated the purchase of 20% of the shares for $100 Million on behalf of one of the joint venture partners.
The Board then requested Mr. Shingler join the management team as EVP and Deputy CEO on an interim basis to lead the transformational turnaround of the company. He took a lead role in successful negotiations with the government to de-regulate telecommunication services which allowed the company to offer more services in competition with the state owned monopoly provider. During the term of Mr. Shingler’s 18 month assignment, the company’s cumulative market share increased from 18% to 38% by adding more customers in those 18 months than had been added in the previous 3 years. Mr. Shingler renegotiated service contracts with suppliers and cut costs by 50%. He was able to turn a $40 Million loss to a $34 Million profit through the introduction of new products and services and cost reductions in the first year.
The year after Mr. Shingler completed his assignment, the European investor sold their 50% interest for $1.8 Billion, over seven times the price he had negotiated for the purchase of the shares three years earlier.