Providence Service adopts shareholders rights plan

By Lisa Kerner

Charlotte, N.C., Dec. 10 - Providence Service Corp.'s board of directors adopted a shareholder rights plan that gives its shareholders rights to purchase shares of newly created series A junior participating preferred stock.

The board also declared a dividend distribution of one preferred share purchase right on each outstanding share of its common stock, a company news release said.

Each right will entitle shareholders to buy one one-hundredth of a series A junior participating preferred at an exercise price of $15.

Providence Service said the dividend distribution will be payable to shareholders of record as of the close of business on Dec. 22.

The rights will be triggered if a person becomes the beneficial owner of 20% or more of Providence Service's outstanding common stock, other than by a "qualified offer."

According to Providence Service, it will seek shareholder ratification of the rights plan within the next 12 months.

Providence is a Tucson, Ariz.-based provider of home- and community-based social services to government-sponsored clients under programs such as welfare, juvenile justice, Medicaid and corrections.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.