STAMFORD, Conn.–(Company WIRE)–Right now Land & Structures Investment decision Administration LLC (jointly with its affiliates, “Land & Buildings”), a important shareholder of Condominium Investment and Administration Business (“AIV” or the “Company”) (NYSE: AIV), declared that a major proxy advisory company, Institutional Shareholder Companies Inc. (“ISS”), has proposed that shareholders vote FOR on the GOLD request card to consent to contact a unique meeting of the Company’s shareholders (the “Special Assembly,” or the “Meeting”) to keep an advisory vote on AIV’s prepared separation of its enterprise into two, different and unique, publicly traded firms, Condominium Revenue REIT (“AIR”) and Aimco, by means of a reverse spin-off.
In concluding that a Specific Conference is warranted, ISS mentioned the adhering to1:
- “Provided the certainty of tax and uncertainty of benefit, allowing for shareholders to convey their views sooner relatively than afterwards could be constructive to both sides. If shareholders share L&B’s issues, that could advise the business that it desires to acquire measures to allay those worries.”
- “On equilibrium, the strategic queries look adequately weighty, specifically in the context of an irreversible strategic choice and tax bill, that shareholder consent FOR the proposal to phone a distinctive conference is warranted.”
- “[T]below are a number of company governance concerns, significantly as it relates to shareholder rights… The previously mentioned worries, blended with the chairman’s possible conflicts of fascination both as a unit holder and as the predicted chairman of both entities post spin-off, whether or not perceived or precise, suggest that improving upon shareholders’ potential to voice their opinions would profit all constituents.”
ISS also commented on AIV’s functionality and absence of reliability with traders, creating:
- “AIV’s uninspiring share selling price general performance because the announcement raises the problem of board credibility with buyers.”
- “Looking at longer time period trends, it appears that the sector has extended been unconvinced by the company’s outcomes.”
- “The stock underperformance prior to and just after the announcement of the proposed spin-off is puzzling in light-weight of the board’s assertion that it is unlocking shareholder benefit and that it often interacts with shareholders, which includes participating with much more than 70 percent of excellent shares in 2020, and raises the queries of shareholders’ true help for the board’s strategy and this unique transaction.”
Jonathan Litt, Land & Properties Founder & Chief Investment decision Officer, said: “We are happy that ISS agrees that AIV shareholders have earned to voice their belief on what we believe that is an enormously price damaging spin-off. As we have regularly said, this would be a non-binding vote but would be highly instructive for the Firm as it considers opportunity paths ahead.
Notably, Chairman and CEO Considine proceeds to show his blatant disregard for shareholders, as is laid bare in the Company’s announcement very last evening (in its Q3 earnings press release) that it produced a $50 million unrelated expense in a Daily life Science business affording him the opportunity to be affiliated with really regarded Lifestyle Science executives at the price of AIMCO shareholders, in our watch.
We search forward to continuing to make our circumstance to shareholders to be certain that such an irreversible and unsafe transaction can not carry on with out a vote.”
1 Permission to estimate ISS was neither sought nor attained. Emphases additional.