MGTA - Magenta adopts stockholder rights plan to ward off unwanted bids
2023-03-31 17:35:12 ET
- Magenta Therapeutics ( NASDAQ: MGTA ) announced a stockholder rights plan for one year on Friday in an attempt to reduce the likelihood of unwanted bids for the company ownership.
- Per the terms, if a party secures 10% or more of beneficial ownership in Magenta ( MGTA ) common stock or in the event of a merger or similar change in its control, the right holder will be entitled to additional MGTA shares or the shares of the acquirer.
- “The Rights Plan will give the Board sufficient time to conduct its previously announced comprehensive review of strategic alternatives focused on maximizing shareholder value,” the company said. The Rights Plan will expire in one year, on March 30, 2024.
- Concurrently, the Cambridge, Massachusetts-based biotech declared a dividend for investors.
- Accordingly, as of the close of business on April 11, 2023, stockholders on record are entitled to one preferred stock purchase right for each outstanding share of the company’s common stock.
- In February, Magenta ( MGTA ) shares surged after the company announced plans to halt development programs and conduct a strategic review to explore business alternatives to maximize shareholder value.
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Magenta adopts stockholder rights plan to ward off unwanted bids