Altaba Announces Stockholder Approval of Plan of Complete Liquidation and Dissolution
28 June 2019 - 3:15AM
Business Wire
Altaba Inc. (“Altaba” or the “Fund”) (NASDAQ:AABA) today
announced that, at the Fund’s special meeting of stockholders (the
“Special Meeting”) held earlier today, its stockholders voted to
approve the voluntary liquidation and dissolution of the Fund
pursuant to the Plan of Complete Liquidation and Dissolution (the
“Plan”). The Fund announced on April 2, 2019 that its board of
directors (the “Board”) had approved the Plan.
Approval of the liquidation and dissolution of the Fund pursuant
to the Plan required the affirmative vote by holders of a majority
of the outstanding shares of the Fund’s common stock entitled to
vote on the proposal. Approximately 55% of the outstanding shares
of the Fund’s common stock as of May 16, 2019, the record date for
the Special Meeting, were voted in favor of the proposal. The
proposal was approved by approximately 92% of the votes cast at the
Special Meeting.
The Fund currently intends to continue its sales of Alibaba
Group Holding Limited’s (“Alibaba”) American Depositary Shares (the
“Alibaba Shares”) through open market transactions and/or through
private dispositions not executed or recorded on a public exchange
or quotation service. Through June 26, 2019, Altaba has sold
approximately 126.4 million Alibaba Shares, approximately 45% of
its stake as of May 17, 2019. The Fund may sell up to 100% of its
Alibaba Shares prior to filing a certificate of dissolution with
the Secretary of State of the State of Delaware. The Fund has
previously disclosed that it intends to sell a minimum number of
Alibaba Shares to ensure that it has the liquid assets that the
Board estimates will be sufficient for the maximum potential
reserves that might be required by the Delaware Court of Chancery
to satisfy the Fund’s known, contingent and potential future
liabilities.
The Fund expects to continue providing stockholders with weekly
updates on the number of Alibaba Shares sold. The updates will be
provided on the Altaba.com website in the section titled
“Holdings”. The amount, timing and method of Alibaba Share sales,
and other related transaction considerations will be determined at
the Fund’s discretion, and the plans are subject to change based on
prevailing market conditions and other factors.
The Fund currently expects to make a pre-dissolution liquidating
distribution late in the third quarter, although this timing is
subject to Board discretion and could change. Prior to making such
a distribution the Fund will announce the record date and the
amount of cash and/or the number of Alibaba Shares to be
distributed. Such announcements and further information regarding
the liquidation and dissolution of the Fund will be provided in
subsequent press releases or filings with the U.S. Securities and
Exchange Commission (the “SEC”) as such information becomes
available.
About Altaba
Altaba is an independent, publicly traded, non-diversified,
closed-end management investment company registered under the
Investment Company Act of 1940. The Fund’s assets primarily consist
of a mix of cash, marketable securities and a substantial position
in Alibaba, which has become one of the world’s largest online
retailers.
Prior to June 16, 2017, Altaba was known as “Yahoo! Inc.” Altaba
was created from Yahoo! Inc. after the sale of its operating
businesses, at which time Yahoo! Inc. reorganized as an investment
company, was renamed Altaba Inc., and began trading under the
Nasdaq ticker symbol AABA.
Visit www.altaba.com for more information.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
This document contains forward-looking statements concerning the
Fund’s proposed liquidation and dissolution pursuant to the Plan.
These statements are not statements of historical facts and do not
reflect historical information. Forward-looking statements are
subject to numerous risks and uncertainties and actual results may
differ materially from those statements. Such risks and
uncertainties relate to, among other things: the availability,
timing and amount of liquidating distributions; the amounts that
will need to be set aside by the Fund; the adequacy of such
reserves to satisfy the Fund’s obligations; the ability of the Fund
to favorably resolve certain potential tax claims, litigation
matters and other unresolved contingent liabilities of the Fund;
the amount of proceeds that might be realized from the sale or
other disposition of the Fund’s primary asset, its Alibaba shares;
the application of, and any changes in, applicable tax laws,
regulations, administrative practices, principles and
interpretations; the incurrence by the Fund of expenses relating to
the liquidation and dissolution; and the ability of the Board to
abandon, modify or delay implementation of the Plan prior to filing
the certificate of dissolution. Further information regarding the
risks, uncertainties and other factors that could cause actual
results to differ from the results in these forward-looking
statements are discussed under the section “Risk Factors” in the
proxy statement that was filed with the SEC in connection with the
liquidation and dissolution pursuant to the Plan, as supplemented
(the “Proxy Statement”). Please carefully consider these factors,
as well as other information contained in the Proxy Statement, and
in the Fund’s periodic reports and documents filed with the SEC.
The forward-looking statements included in this document are made
only as of the date hereof.
The Fund does not undertake any obligation to update or
supplement such forward-looking statements to reflect events or
circumstances after the date hereof, except as required by law.
Because the Fund is an investment company, the forward-looking
statements and projections in this press release are excluded from
the safe harbor protection provided by Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities and Exchange Act of 1934, as amended.
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version on businesswire.com: https://www.businesswire.com/news/home/20190627005737/en/
Investor Relations and Media: Abernathy MacGregor Alan Oshiki
212-371-5999 altaba@abmac.com
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