Aim High Aimco
Shareholders Deserve to Have Their Voices Heard on AIV’s
Proposed Spin-Off that Could Destroy Significant Value, In Our View
We believe the proposed plan to separate AIV into two businesses is a thinly veiled attempt by management and the Board of Directors to rid themselves of a decades-long poor track record rather than address the fundamental issues challenging the Company, in our view.
More than 43% of AIV’s outstanding shares have consented to call the Special Meeting. We believe this strong show of support unequivocally demonstrates that shareholders believe they deserve the opportunity to have their voices heard on the proposed spin-off and urge the Company to hold the Special Meeting without any unnecessary delay and prior to consummation of the spin-off.
Shareholders deserve the right to express their views on such a material, and in our view, potentially value-destroying plan. We therefore called on the Board to immediately put the proposed spin-off to a shareholder vote but the Board chose to proceed down its path toward completing the transaction in December 2020, prior to the Company’s 20201 Annual Meeting.
We therefore were compelled to take action into our own hands on behalf of AIV shareholders and solicited written requests for the calling of a special meeting of shareholders to conduct an advisory vote on the proposed spin-off. On November 11, 2020, we delivered written requests from the holders of more than 43% of the Company’s outstanding shares to call the Special Meeting and urged AIV to call the Special Meeting without any unnecessary delay and prior to consummation of the spin-off.
What seems clear to us is that the proposed spin-off is not the result of an informed evaluation of all available opportunities to maximize shareholder value, particularly given the extraordinary appetite by private institutional investors for high-quality apartments.