Sylvamo's Board Adopts Limited-Duration Shareowner Rights Plan, Effective Immediately

Sylvamo's board of directors unanimously adopted a limited-duration shareowner rights plan Monday to protect the interests of, and maximize value for, all shareowners. The rights plan is effective immediately.

The board adopted the rights plan after Atlas Holdings directed its two affiliated directors to resign, triggering the termination of a 2023 cooperation agreement between Atlas and Sylvamo. As a result, after Nov. 13, Atlas will no longer be subject to standstill restrictions under the cooperation agreement.

Atlas rapidly acquired a large position in the company's common stock in 2022 and has economic exposure to approximately 21.5% of Sylvamo's outstanding common stock, consisting of 16% beneficial ownership and 5.5% additional economic exposure through derivatives.