Feb, 2002 : Interland Investors Replace Micron Tech Foundation

📅 February 11, 2002 - Interland, Inc. (interland.com 👉 Total Reviews: 2
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Micron Technology, through a subsidiary, had donated its Interland stock tothe Foundation six months ago, and some observers expected the foundation tobegin liquidating its holdings to fund its charitable mandate as soon as itslockup period expired in May.
The purchasers, regarded as long-term investors, are PAR Capital Management,Blum Capital, Tudor Investments Corporation, Kahn Capital, and VardonCapital, or funds managed by them, as well as a large Boston-basedinstitutional investor on behalf of its client. Interland repurchased about5.8 million shares, or approximately ten percent of the foundation's block,and four directors, including chairman and CEO Joel Kocher, in the aggregatebought 1.3 million shares, or approximately two percent of the foundation'sshares.
The purchasers agreed to abide by the foundation's lockup period and tolimit resales thereafter through the end of this calendar year, even if theshares are registered with the SEC.
"In the past year, our company underwent a complete transformation, movingfrom PC manufacturing to Web hosting, and emerging as a market leader with astrong cash position and plans to achieve free cash flow by August 2002,"said Interland CFO David Buckel. "This transfer effectively eliminates anyoverhang issue for investors concerned about the possibility that thefoundation might begin liquidating its shares after the lock-up expired.Although the transfer marks the end of our affinity with Micron Technology,Interland appreciates the long history of support, first as parent companyand later as major investor, that brought us to this point."