Verso sets stockholders’ rights plan
MIAMISBURG, Ohio, — Verso Corporation has announced its board of directors in late March re-engaged Houlihan Lokey Capital, Inc. as the company’s financial advisor to assist Verso in identifying and evaluating a range of potential strategic alternatives.
Those include a possible merger, joint venture, partnership, business combination, stock repurchase, recapitalization, sale, distribution, transfer or other disposition or acquisition of assets or equity interests, while the company conducts its search for a permanent CEO.
“In light of recent headwinds faced by Verso and many of our competitors, we have taken several steps to address our challenges, including the announcement of the closure of the Luke Mill and the announcement of a change in leadership,” said Alan Carr, board co-chairman.
The company also announced the board has approved a limited duration stockholder rights plan and authorized a dividend distribution of one right for each outstanding share of common stock, subject to board approval of final documentation.
The rights plan is intended to enable all Verso stockholders to realize the full potential value of their investment and to protect their interests by reducing the likelihood any person or group gains control of Verso through open market accumulation or other tactics without paying an appropriate control premium.
In addition, the rights plan provides the board with time to make informed decisions for the benefit of stockholders and does not deter the
board or stockholders from considering any offer that is fair. The plan encourages participation in the strategic process, rather than through unsolicited offers.
The rights plan is similar to other plans adopted by publicly-traded companies.
Details of the rights plan will be in a report on Form 8-K that Verso will file with the Securities and Exchange Commission. These filings will be available on the SEC’s web site at www.sec.gov.
The company’s full news release also can be found at https://www.prnewswire.com/news-releases/verso-corporation-explores-strategic-alternatives-and-approves-adoption-of-stockholder-rights-plan-300867544.html.
Verso is the leading North American producer of printing and specialty papers and pulp. It has mills in the U.P. in Quinnesec and Escanaba.