Finish Line Inc (NASDAQ:FINL) reported that its Board of Directors has approved a shareholder rights plan to safeguard the best interests of company’s shareholders. The Rights Plan is planned to lessen the likelihood that any group or person would gain control of company through open market accumulation or forced takeover strategies that the Board decides are not in the best interests of the firm and its shareholders.
Glenn S. Lyon, the Chairman of Finish Line, reported that the board considers that it is in best interests of company and their shareholders to follow a shareholder rights program provided the recent share accumulations and current market conditions. The plan is intended to ensure that the firm’s board is able to suitably contemplate whether applications, if any, are in the best stakes of all their shareholders. The firm remains positioned to capture the prospects they foresee to enhance value for all its shareholders.
Sam Sato, the CEO of Finish Line, reported that while the scope for athletic footwear is extremely promotional and competitive, they remain committed to enhancing value for all their shareholders by continuing to implement on their growth plans and continuing disciplined expense management. They continue to focus on implementing its strategic plan and strengthening their customer experience through enhanced omnichannel capabilities and with every client interaction to offer a personalized, consistent and fast experience.
In connection with the approval of the Rights Plan, the Board announced on August 25, 2017 a dividend of a preferred stock purchase right for each outstanding share of the firm. The payout date is set as of record on September 11, 2017. Each preferred stock purchase right initially allows the registered holder to buy from the firm one ten-thousandth of a share of a freshly-created series of the firm’s preferred stock for $26.