Altaba Inc. (“Altaba” or the “Fund”) announced today that, in
connection with its previously announced Plan of Complete
Liquidation and Dissolution (the “Plan”), the Fund intends to
commence selling the Alibaba Group Holding Limited’s (“Alibaba”)
American Depositary Shares (the “Alibaba Shares”) on May 20, 2019.
The Fund intends to sell the Alibaba Shares through open market
transactions and/or through private dispositions not executed or
recorded on a public exchange or quotation service.
The Fund has previously disclosed that it intends to sell a
minimum number of Alibaba Shares to ensure that the Fund has
sufficient liquid assets to cover the amount of assets that the
board of directors of the Fund (the “Board”) estimates will be
sufficient to cover 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, and the Fund
may sell up to 100% of its Alibaba Shares. In no event, however,
will the Fund sell more than half of its Alibaba Shares prior to
stockholder approval of the Plan.
As previously disclosed, the Plan was approved by the Board on
April 2, 2019 and is currently scheduled to be voted on by the
Fund’s stockholders at a special meeting to be held on June 27,
2019.
The Fund continues to be a party to the Amended and Restated
Registration Rights Agreement, dated as of September 18, 2012, as
amended on January 24, 2018, by and among Alibaba, the Fund, Altaba
Holdings Hong Kong Limited, SoftBank Group Corp., certain members
of Alibaba’s management and certain other stockholders, which
provides certain limitations and restrictions on the Fund’s share
sale activities.
The Fund currently intends to update stockholders weekly on the
actual amount of shares sold on the Altaba.com website, in the
section titled “Holdings”.
The actual commencement of selling, the timing and method of
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.
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 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.
Additional Information about the Liquidation and Dissolution
of the Fund and Where to Find It
This press release is for informational purposes only. It is
neither a solicitation of a proxy, an offer to purchase, nor a
solicitation of an offer to sell shares of the Fund. In connection
with the proposed liquidation and dissolution of the Fund pursuant
to the Plan, the Fund has filed a preliminary proxy statement with
the U.S. Securities and Exchange Commission (the “SEC”). The Fund
will mail the definitive proxy statement and a proxy card to each
stockholder of the Fund entitled to vote at the special meeting
relating to the proposed liquidation and dissolution pursuant to
the Plan. STOCKHOLDERS OF THE FUND ARE URGED TO CAREFULLY READ
THESE MATERIALS IN THEIR ENTIRETY (INCLUDING ANY AMENDMENTS OR
SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT MATERIALS THAT THE FUND
WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION. The definitive proxy statement and
other relevant materials (when they become available), and any
other documents filed by the Fund with the SEC, may be obtained
free of charge at the SEC’s website at www.sec.gov. In addition, stockholders may obtain
free copies of the documents filed with the SEC by the Fund by
contacting the Fund’s Secretary at 140 East 45th Street, 15th
Floor, New York, New York 10017 or to Georgeson LLC toll free at
1-866-219-9786.
Participants in the Solicitation
The Fund and its directors and executive officers may, under SEC
rules, be deemed to be participants in the solicitation of proxies
from the Fund’s stockholders in connection with the proposed
liquidation and dissolution pursuant to the Plan. Information about
the persons who may, under the rules of the SEC, be considered to
be participants in the solicitation of the Fund’s stockholders in
connection with the proposed liquidation and dissolution pursuant
to the Plan, and any interest they have in the proposed liquidation
and dissolution pursuant to the Plan, will be set forth in the
definitive proxy statement when it is filed with the SEC.
Additional information regarding these individuals is set forth in
the Fund’s proxy statement for its 2018 annual meeting of
stockholders, which was filed with the SEC on August 31, 2018, and
its Annual Report on Form N-CSR for the fiscal year ended December
31, 2018, which was filed with the SEC on February 27, 2019. These
documents may be obtained free of charge at the SEC’s website at
www.sec.gov. In addition, stockholders
may obtain free copies of the documents filed with the SEC by the
Fund by contacting the Fund’s Secretary at 140 East 45th Street,
15th Floor, New York, New York 10017 or to Georgeson LLC toll free
at 1-866-219-9786.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
This document contains forward-looking statements concerning the
proposed liquidation and dissolution pursuant to the Plan. Without
limiting the foregoing, words or phrases such as “will likely
result,” “are expected to,” “will continue,” “anticipate,”
“estimate,” “project,” “believe,” “intend” or similar expressions
are intended to identify forward-looking statements. 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, including prior to
the filing of a certificate of dissolution; 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 shares of Alibaba
Group Holding Limited; 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 proposed liquidation and dissolution; and
the ability of the Board to abandon, modify or delay implementation
of the Plan, even after stockholder approval. Further information
regarding the risks, uncertainties and other factors that could
cause actual results to differ from the results in these
forward-looking statements will be discussed under the section
“Risk Factors” in the definitive proxy statement that will be filed
with the SEC in connection with the proposed liquidation and
dissolution pursuant to the Plan, when it becomes available. Please
carefully consider these factors, as well as other information
contained in the definitive proxy statement, when it becomes
available, 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/20190515005977/en/
Investor Relations and Media:Abernathy MacGregorAlan
Oshiki212-371-5999altaba@abmac.com
Altaba (NASDAQ:AABA)
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