Sylvamo Adopts Shareholder Rights Plan

Sylvamo’s (NYSE: SLVM) board of directors unanimously adopted a limited-duration shareholder rights plan to protect the interests of all shareholders. The rights plan is effective immediately.

The board adopted the plan after Atlas Holdings confirmed it entered into a block trade that would give Atlas nearly 14% of Sylvamo’s outstanding shares and informed Sylvamo it also holds an unspecified amount of derivatives on Sylvamo shares. Sylvamo’s leaders maintain open dialogue with Sylvamo’s investors, including Atlas, and plan to continue these conversations. Sylvamo recognizes Atlas’ extensive experience in the paper industry.

The rights plan, which is designed to allow Sylvamo shareholders to realize the long-term value of their investment, reduces the likelihood any person or group could gain control of the company through open market or private accumulations of our shares without appropriately compensating shareholders for such control or providing the board sufficient time to make informed decisions. The rights plan applies equally to all current and future shareholders; it does not deter offers or prevent the board from considering offers that are in the best interest of Sylvamo shareholders. In light of, among other things, recent market volatility and Sylvamo’s March 7 announcement regarding its business in Russia, Sylvamo does not believe the current market price reflects its intrinsic value.

The rights plan is similar to those adopted by other publicly traded companies. Sylvamo is issuing one right for each share of common stock outstanding as of the close of business May 2, 2022. The rights will initially trade with Sylvamo common stock and will generally become exercisable only if any person (or group) acquires 10% (or 20% for certain passive investors) or more of Sylvamo’s outstanding common stock, except that any person or group who currently owns more than the triggering percentage may continue to own shares of common stock. However, any current owner of more than the triggering percentage may not acquire any additional shares without triggering the rights plan. The rights plan does not combine the ownership of shareholders “acting in concert” unless they have formed a group under applicable securities laws.

If the rights become exercisable, all holders (other than any triggering person or group) will be entitled to acquire shares of common stock at a 50% discount, or Sylvamo may exchange each right held by such holders for one share of common stock. The plan does not contain any dead-hand, slow-hand, no-hand or similar feature that limits the ability of a future board of directors to redeem the rights.

The rights plan has a one-year term, expiring April 21, 2023. However, the board may consider an earlier termination as circumstances warrant.

Additional details about the rights plan are available in a Form 8-K to be filed with the Securities and Exchange Commission.
https://investors.sylvamo.com/news/news-details/2022/Sylvamo-Adopts-Shareholder-Rights-Plan/default.aspx

Related Posts

Domtar, Paper Excellence Merger Receives Canadian Competition Bureau Approval

Paper Excellence B.V. and Domtar Corporation jointly announced that they have received Canadian Competition Act approval for their business combination whereby Karta Halten B.V., an affiliate of Paper Excellence, will acquire all of the issued and outstanding shares of Domtar common stock for $55.50 per share in cash pursuant to an agreement and plan of merger dated May 10, 2021. The consent agreement filed by the Canadian Commissioner of Competition with the Competition Tribunal today fulfills the final condition to the closing of the Merger. The consent agreement requires that, following the closing of the Merger, Domtar’s pulp mill in Kamloops, British Columbia be sold to resolve the Commissioner’s concerns about the Merger’s implications on the purchase of wood fibre from the Thompson/Okanagan region in British Columbia. The transaction remains on course to close in the fourth quarter of this year.

American Eagle Paper Mills Announces New Employee Owners

American Eagle Paper Mills announced today Allan Bobb, Machine Room Superintendent, and Colin Symons, Furnish Prep Manager, have become the first employees invited to the ownership team since the Mill reopened in 2003. “This a cause for celebration amidst challenging times in our industry and our community. Buying into the Mill underscores the significant commitment Allan and Colin have made to American Eagle and to their fellow employees. They bring dedication and talent to the Mill every day. They believe in the Mill’s future and are an important part of its success,” said Scott Igoe, President and partner. Board member Philip Devorris agreed. “I couldn’t be happier than having Allan and Colin join the ownership team, a group that includes long-time employee-owners, Igoe, Clark Adelman and Bill Naugle. As an outside owner, along with my partners Harry Sickler and Todd Lewis, we recognize Allan and Colin as key leaders in the Mill’s future.”

Xerox Declares Dividend on Common and Preferred Stock

Xerox (NYSE: XRX) announced today that its board of directors declared a quarterly cash dividend of $0.25 per share on Xerox common stock. The dividend reflects the one-for-four reverse stock split that became effective on June 14, 2017. The dividend is payable on October 31, 2017 to shareholders of record on September 29, 2017.
Back To Top
×Close search
Search