Newpark Resources Adopts Limited Duration Stockholder Rights Plan
This action reflects a response to the significant decline in the market price of the Company's common stock following the sharp decline in oil prices and its negative impact on the demand for our products and services, which has been exacerbated by the COVID-19 pandemic. The Board of Directors does not believe the current trading price of the Company's common stock is reflective of the Company's long-term value. The Rights Plan is designed to ensure that all of the Company's stockholders receive fair and equal treatment in the event of any proposed takeover of the Company and to guard against abusive tactics to gain control of the Company without paying all stockholders a premium for that control. The rights are intended to enable all of the Company's stockholders to realize the long-term value of their investment in the Company. The Rights Plan will not prevent a takeover, but should encourage any party seeking to acquire the Company to negotiate with the Board prior to attempting a takeover.
In general, the stockholder rights will be exercisable only if a person or group acquires 10% (or 20% for certain passive investors) or more of the Company's outstanding common stock (directly or indirectly through derivative instruments), and will be provided to all stockholders of record as of
A copy of the stockholder rights agreement will be contained in a Form 8-K to be filed with the
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements other than statements of historical facts are forward-looking statements. Words such as "will," "may," "could," "would," "should," "anticipates," "believes," "estimates," "expects," "plans," "intends," and similar expressions are intended to identify these forward-looking statements but are not the exclusive means of identifying them. These statements are not guarantees that our expectations will prove to be correct and involve a number of risks, uncertainties, and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the
Contacts:
Senior Vice President & Chief Financial Officer
gpiontek@newpark.com
281-362-6800
View original content:http://www.prnewswire.com/news-releases/newpark-resources-adopts-limited-duration-stockholder-rights-plan-301066483.html
SOURCE