Chattanooga-based CBL Properties announced Thursday that its board adopted a Stockholder Protection Rights Agreement and declared a dividend of one right on each outstanding share of CBL common stock.
The adoption of the agreement is intended to protect the long-term interests of CBL and CBL shareholders, and enable them to realize the full potential value of their investment in the company, CBL said in a statement.
The agreement is designed to reduce the likelihood that any entity, person or group would gain control of, or significant influence over, CBL, through the open-market accumulation of the company’s shares, private purchases or otherwise, without appropriately compensating all CBL shareholders for control at a full and fair price in a transaction that is in the best interests of the company and its stockholders, the company said.
“We have made significant strategic and operational progress since emerging from bankruptcy in November 2021,” Stephen Lebovitz, CBL chief executive officer, said in a statement.
He said the agreement is not intended to preclude discussions or engagement with parties regarding value-creation opportunities for CBL. Furthermore, it will ensure that the board and management can properly evaluate and implement business and operational strategies that maximize value for all of CBL’s shareholders, Lebovitz said.
The record date to determine stockholders entitled to receive the rights is Sept. 22.
— Compiled by Mike Pare