Highpower International adopts stockholder rights plan
Highpower International announced that its Board of Directors approved the adoption of a stockholder rights plan and declared a dividend distribution of one right for each outstanding share of common stock. The record date for such dividend distribution is September 21. The Rights Plan is similar to other plans adopted by publicly-held companies. Under the Rights Plan, the rights generally would become exercisable only if a person or group (including a group of persons who are acting in concert with each other) acquires beneficial ownership of 15% or more of Highpower's common stock in a transaction not approved by Highpower's Board of Directors. In that situation, each holder of a right (other than the acquiring person or group, whose rights will become void and will not be exercisable) will have the right to purchase, upon payment of the exercise price and in accordance with the terms of the Rights Plan, a number of shares of Highpower common stock having a market value of twice such price. In addition, if Highpower is acquired in a merger or other business combination after an acquiring person acquires 15% or more of Highpower's common stock, each holder of the right would thereafter have the right to purchase, upon payment of the exercise price and in accordance with the terms of the Rights Plan, a number of shares of common stock of the acquiring person having a market value of twice such price. The acquiring person or group would not be entitled to exercise these Rights. In the Rights Plan, the definition of "beneficial ownership" includes derivative securities. The Rights Plan expires, without any further action being required to be taken by Highpower's Board of Directors, on September 12, 2020.