from SNL Real Estate Daily
Stratus Properties adopts limited-duration shareholder rights plan
Byline: Joyce Guevarra
Stratus Properties Inc. said its board unanimously adopted a limited-duration shareholder rights plan as the company advances its exploration of a possible conversion to a real estate investment trust.
The plan, which is effective immediately, will reduce the likelihood of concentrated share ownership that could adversely impact Stratus' ability to qualify as a REIT.
The rights will expire Sept. 22, 2023. Prior to that date, the rights will expire at the earlier of the time at which the company s conversion to a REIT becomes effective and the close of business on Dec. 31, 2021, unless shareholder approval has been obtained on or prior to such date.
The rights will be exercisable if an investor acquires beneficial ownership of 9.8% or more of the outstanding common stock of Stratus. Investors with beneficial ownership of 9.8% or more as of Sept. 22 will not be allowed to increase their ownership without triggering the rights.
Jones Walker LLP and Sidley Austin LLP are Stratus' legal counsel.
