Boston, MA, 04/03/2014 (usastockreports) – Barnes & Noble, Inc. (NYSE:BKS), the leading retailer in digital media, content and educational products, made an announcement on April 3, 2014 that the company has signed agreements with Liberty Media Corporation (NASDAQ:LMCA), to reduce the stakes in BKS.
Liberty Media Corporation informed BKS that the firm will be selling majority part of its shares in BKS to authorized institutional buyers under the Rule 144A of the Security Act. But the firm will retain about 10% of the initial investment done in BKS. The sale of the shares is expected to be done on April 8, 2014.
BKS announced that as per the agreement made, Liberty Media will now lose all the rights to elect the directors of the Directorial Board of BKS. Moreover, LMCA and LMBC will be ceased of their consent rights as well as pre-emptive rights. As, LMCA and LMBA have lost rights to choose the stock directors of BKS, Greg Maffei, the president and CEO of LMCA will be removed from the BKS’s directorial board on April 8, 2014.
BKS has appointed Mark Carleton in the Board of the firm and will be effective after Greg leaves on April 8.
Greg Maffei, the CEO and president of LMCA said that the firms have got into this agreement because it would make BKS more flexible in accomplishing its current strategic objectives. He further added that the firm will maintain good relations with BKS in future as well.
The Chairman of BKS, Leonard Riggio said that LMCA has been very supportive to BKS and Greg Maffei has served as an outstanding director. He said that LMCA’s decision to retain 10% of the initial investment is because of the firm’s current commitments to BKS. He also added that BKS’s current strategies required these changes for the growth of the company and that is why the firms got into these agreements.