Forestar Group And D.R. Horton Enter Amended And Restated Stockholder's Agreement; As Of October 28, 2024, D.R. Horton Owned ~62% Of The Company's Outstanding Common Stock
Portfolio Pulse from Benzinga Newsdesk
Forestar Group Inc. and D.R. Horton, Inc. have entered into an Amended and Restated Stockholder's Agreement, increasing the approval threshold for capital expenditures from $20 million to $45 million. D.R. Horton owns approximately 62% of Forestar's outstanding common stock.
November 01, 2024 | 8:43 pm
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POSITIVE IMPACT
Forestar Group Inc. has amended its stockholder's agreement with D.R. Horton, increasing the capital expenditure approval threshold to $45 million. This change could allow for more flexibility in investment decisions.
The increase in the capital expenditure approval threshold from $20 million to $45 million allows Forestar more flexibility in making investment decisions without needing D.R. Horton's consent. This could lead to more strategic investments and growth opportunities, positively impacting Forestar's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
D.R. Horton, owning 62% of Forestar, has agreed to an amended stockholder's agreement that increases the capital expenditure approval threshold to $45 million, potentially impacting its control over Forestar's investment decisions.
While D.R. Horton maintains significant control with 62% ownership, the increased threshold for capital expenditures may reduce its direct influence over smaller investment decisions. This could have a neutral impact on D.R. Horton's stock as it balances control with potential growth opportunities for Forestar.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80