AltisourceResidential Corp. and a group of activist investors ended theirongoing proxy fightover the company's current board makeup,with the company agreeing to add two new independent directors.
In exchange, the activists, RESI Shareholders Group, will nolonger seek to nominatecertain individuals for election to the board at the company's upcoming annualmeeting. The shareholders group, which owns about 2.5% of the company'soutstanding stock, also agreed to abide by customary standstill provisions.
As a result of the agreement, the board is recruiting newdirector candidates, the company said.
David Reiner, chairman of Altisource's board of directors,said in a news release that adding new directors and diversifying the board is "essential"as the company expands its business and executes its single-family rentalstrategy.
RESI Shareholders Group recently said in a letter tostockholders that the manner in which Altisource's board operates the REITprimarily benefits Altisource Asset Management Corp., the company's externalmanager, and Altisource PortfolioSolutions SA, its external services provider. The company hit backby refuting the claim and urged its shareholders to vote for its slate of fivedirector nominees at the upcoming June 1 shareholder meeting, as previouslyreported.
In announcing the agreement, the board affirmed itscommitment to a $100 million common stock buyback that was announced in August2015.