Altaba Announces Stockholder Approval of Plan of Complete Liquidation and Dissolution
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.