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Maximizing Value in Community Development
|Forestar Adopts Tax Benefits Preservation Plan to Preserve Valuable Tax Benefits|
The purpose of the Plan is to preserve the Company’s ability to use its Tax Benefits, under certain circumstances, to reduce its future tax liability, which would be substantially limited if the Company experienced an “ownership change” as defined under Section 382 of the Internal Revenue Code. In general, an ownership change would occur if the Company’s “5-percent shareholders,” as defined under Section 382, collectively increase their ownership in the Company by more than 50 percentage points over the lowest ownership percentage within a rolling three-year period.
Under the Plan, the Company is issuing one Right for each share of its
common stock outstanding at the close of business on
Pursuant to the Plan, if a shareholder (or group) becomes a 5-percent
shareholder after adoption of the Plan without meeting certain customary
exceptions, the Rights would become exercisable and entitle stockholders
(other than the 5-percent shareholder or group causing the rights to
become exercisable) to purchase additional shares of
Additional details of the Plan will be communicated in a current report
on Form 8-K to be filed with the
This release contains “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are typically identified by words or phrases such as “will,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target,” “forecast,” and other words and terms of similar meaning. These statements reflect management’s current views with respect to future events and are subject to risk and uncertainties. We note that a variety of factors and uncertainties could cause our actual results to differ significantly from the results discussed in the forward-looking statements, including but not limited to: general economic, market, or business conditions; market demand for our non-core assets; changes in commodity prices; opportunities (or lack thereof) that may be presented to us and that we may pursue; fluctuations in costs and expenses including development costs; demand for new housing, including impacts from mortgage credit rates or availability; lengthy and uncertain entitlement processes; cyclicality of our businesses; accuracy of accounting assumptions; competitive actions by other companies; changes in laws or regulations; risks relating to the effectiveness of the Plan as a deterrent to transactions that might affect the Company’s ability to utilize its Tax Benefits; and other factors, many of which are beyond our control. Except as required by law, we expressly disclaim any obligation to publicly revise any forward-looking statements contained in this news release to reflect the occurrence of events after the date of this news release.
Forestar Group Inc.