STAMFORD, Conn.–(Enterprise WIRE)–These days Land & Buildings Expenditure Management LLC (together with its affiliate marketers, “Land & Buildings”), a significant shareholder of Condominium Investment and Administration Company (“AIV” or the “Company”) (NYSE: AIV), declared that a major proxy advisory firm, Institutional Shareholder Solutions Inc. (“ISS”), has advised that shareholders vote FOR on the GOLD request card to consent to call a exclusive meeting of the Company’s shareholders (the “Special Assembly,” or the “Meeting”) to maintain an advisory vote on AIV’s planned separation of its enterprise into two, different and distinctive, publicly traded businesses, Condominium Cash flow REIT (“AIR”) and Aimco, by a reverse spin-off.
In concluding that a Exclusive Conference is warranted, ISS noted the subsequent1:
- “Given the certainty of tax and uncertainty of reward, letting shareholders to express their sights quicker relatively than later could be constructive to the two sides. If shareholders share L&B’s issues, that could advise the company that it needs to consider ways to allay all those considerations.”
- “On balance, the strategic concerns appear sufficiently weighty, especially in the context of an irreversible strategic conclusion and tax bill, that shareholder consent FOR the proposal to simply call a special assembly is warranted.”
- “[T]right here are quite a few corporate governance fears, significantly as it relates to shareholder rights… The above concerns, put together with the chairman’s possible conflicts of fascination each as a unit holder and as the anticipated chairman of each entities submit spin-off, irrespective of whether perceived or precise, advise that strengthening shareholders’ ability to voice their views would profit all constituents.”
ISS also commented on AIV’s effectiveness and absence of reliability with investors, crafting:
- “AIV’s uninspiring share rate general performance since the announcement raises the query of board believability with investors.”
- “Hunting at lengthier expression trends, it appears that the marketplace has lengthy been unconvinced by the firm’s benefits.”
- “The stock underperformance ahead of and soon after the announcement of the proposed spin-off is puzzling in light of the board’s assertion that it is unlocking shareholder worth and that it frequently interacts with shareholders, which includes participating with additional than 70 per cent of remarkable shares in 2020, and raises the thoughts of shareholders’ true guidance for the board’s technique and this unique transaction.”
Jonathan Litt, Land & Properties Founder & Main Investment decision Officer, said: “We are happy that ISS agrees that AIV shareholders are worthy of to voice their opinion on what we imagine is an enormously benefit damaging spin-off. As we have regularly stated, this would be a non-binding vote but would be really instructive for the Business as it considers potential paths ahead.
Notably, Chairman and CEO Considine carries on to exhibit his blatant disregard for shareholders, as is laid bare in the Company’s announcement very last night (in its Q3 earnings press launch) that it created a $50 million unrelated financial investment in a Life Science business enterprise affording him the option to be related with extremely regarded Lifetime Science executives at the expenditure of AIMCO shareholders, in our view.
We search forward to continuing to make our scenario to shareholders to assure that these types of an irreversible and destructive transaction are not able to commence with out a vote.”
1 Authorization to quotation ISS was neither sought nor acquired. Emphases included.