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

Solenis to Increase Prices on all Water Treatment, Process and Pulp & Paper Product lines across Europe, Middle East and Africa (EMEA)

Solenis, a leading global producer of specialty chemicals, will increase prices by 5 to 15 percent on all water treatment, process and pulp & paper product lines across the EMEA region, effective immediately or as customer contracts allow. The price increase is necessary due to the tightening of raw material supply globally and escalating energy, packaging and transportation costs.

Neenah Reports Third Quarter 2020 Results

Third Quarter Highlights *Net sales of $190.7 million increased 18 percent versus the second quarter with strong rebounds in each segment. *Filtration revenues increased 9 percent versus the prior year and contributed to a $3 million year-on-year increase in Technical Products operating income. *Consolidated operating income of $13.9 million compared with $19.0 million in the prior year. Excluding adjusting items of $2.0 million in 2020 and $2.5 million in 2019, operating income increased $15.4 million versus the second quarter, but declined from $21.5 million in 2019 to $15.9 million in 2020. *Cash generated from operations of $36.8 million increased from $33.4 million in the prior year as a result of actions in 2020 to carefully manage working capital and reduce spending. *Liquidity of $182 million as of September 30, 2020 increased from $159 million as of June 30, 2020.

ANDRITZ to supply key pulp production equipment for Nine Dragons Paper mills in China

International technology Group ANDRITZ has been awarded orders from Nine Dragons Paper, China, to supply equipment and key process technologies for five of their mills. The scope of supply on EPS basis includes the following equipment: *A white liquor plant with a capacity of 10,500 m3/d, including a recausticizing plant and an ANDRITZ LimeKiln. The recausticizing plant delivery includes a green liquor cooler, a LimeSlake slaker-classifier, three causticizer tank agitators, a drum filter for dregs handling, a LimeWhite filter for white liquor filtration to achieve high white liquor quality, and a LimeDry filter for efficient lime mud filtration to ensure high lime mud dryness and consequently a low heat consumption in the kiln. The ANDRITZ LimeKiln, with a capacity of 950 t/d burnt lime, will be equipped with a high-efficiency LimeCool sector cooler. *A recausticizing plant with a capacity of 5,800 m3/d. *Two ash re-crystallization (ARC) systems with ash handling capacities of 400 t/d and 200 t/d respectively, to treat the ash from the electrostatic precipitator by decreasing the chloride and potassium content while recovering sodium and sulphate. *A recausticizing plant with a capacity of 5,800 m3/d. *An ash re-crystallization (ARC) system with an ash handling capacity of 200 t/d to treat the ash from the electrostatic precipitator by decreasing the chloride and potassium content while recovering sodium and sulphate. *Three recausticizing plants with a capacity of 2,500 m3/d each.
Back To Top
×Close search
Search