Altisource Residential (RESI), RESI Shareholders Group Enter Agreement; Will Add Independent Directors
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Altisource Residential Corporation (NYSE: RESI) announced that it has entered into an agreement with RESI Shareholders Group, a shareholder group with ownership of approximately 2.5% of the Company’s outstanding shares. Under the terms of the agreement, the Company has agreed to seek to add two new independent directors and RESI Shareholders Group has agreed to withdraw its nomination of certain individuals for election to the Board at the Company’s 2016 Annual Meeting and to abide by customary standstill provisions. The Board is actively recruiting new director candidates.
David B. Reiner, Chairman of the Residential Board of Directors, said, "As the Company’s initial operating results show, we are successfully executing our single-family rental strategy and believe our plan for continued growth will further confirm its achievability. As our business expands, the Board believes it is essential to add new directors and to broaden the expertise, diversity and perspective of the Board. We look forward to working with the new directors to continue advancing Residential’s position as it capitalizes on the sustained growth in single-family rental demand to enhance long-term value for all Residential stockholders.”
The Board has also reiterated its intention to execute against its $100 million buyback program announced in August 2015. The Company may repurchase shares from time to time in its discretion, based on ongoing assessments of the capital needs of the Company, the market price of its common stock and general market conditions.
Mr. Reiner continued, “We intend to continue to buy back stock in a disciplined and deliberate manner, reflecting our belief that Residential's stock at current levels represents an attractive investment opportunity.”
The complete agreement between Residential and RESI Shareholders Group will be included as an exhibit to a Current Report on Form 8-K, which will be filed by Residential with the Securities and Exchange Commission (“SEC”).
Residential's definitive proxy materials and other materials regarding the Board's recommendation for the 2016 Annual Meeting can be found at the investor relations section of the Company's website at www.altisourceresi.com.
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