Israeli 3D printing company Stratasys (Nasdaq: SSYS) is taking preventative action to protect itself from a potential takeover, after another Israeli 3D printing company Nano Dimension (Nasdaq: NNDM) announced last week that it had reached a 12.1% stake in the Rehovot-based company.
Stratasys today reported that it has adopted a limited duration shareholder rights plan, which will be in effect for one year - a 'poison pill' ploy to thwart any takeover. In the plan, if any shareholder reaches a 15% stake in the company, then Stratasys will grants rights to all other shareholders, not including the entity with the 15% stake, to purchase additional shares for each share that they already hold.
Stratasys said that the aim of the plan is to protect the long-term interests of the company and its shareholders and allow them to exercise the full potential of their investment. The company added that the plan is built so as to reduce any likelihood of some person or group taking control or substantial influence over Stratasys by buying shares on the open market, without paying the proper amount to other shareholders for control.
The company said that the plan is not intended to prevent or interfere with any action with respect to Stratasys that the board determines to be in the best interests of the company and its shareholders. Instead, Stratasys added, it will position the board to fulfill its fiduciary duties on behalf of all shareholders by ensuring that it has sufficient time to make informed judgments about any attempts to control or significantly influence Stratasys. The plan, the company concluded, will encourage anyone seeking to gain a significant interest in Stratasys to negotiate directly with the Board prior to attempting to control or significantly influence the company.
In addition to Stratasys with its 12.1% stake, Cathie Wood's ARK Fund has a similar stake in the company.
Nano Dimension raised $1.5 billion in a series of offerings in 2020 and 2021 and in theory still has enough cash to greatly increase its stake in Stratasys.
Published by Globes, Israel business news - en.globes.co.il - on July 25 2022.
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