Conn's Explores Strategic Alternatives; Adopts One-Year Stockholder Rights Plan

(RTTNews) - Conn's Inc. (CONN) said Monday that its board authorized management to explore a full range of strategic alternatives for the Company to enhance value for stockholders, including, but not limited to, a sale of the Company, separating its retail and credit businesses or slowing store openings and returning capital to investors.

The company has engaged BofA Merrill Lynch as financial advisor and Vinson & Elkins LLP as legal counsel to assist in the process.

"Our strategic initiatives remain on track with new store openings and the penetration of new geographic markets, and we remain committed to our current strategic plan," stated Theodore M. Wright, Conn's chairman and chief executive officer.

In connection with authorizing the strategic review of alternatives, the Company's Board of Directors also has adopted a stockholder rights plan and declared a dividend of one right on each outstanding share of the Company's common stock.

The Rights Plan will expire on October 5, 2015 and is intended to enable management and the Board of Directors to explore strategic alternatives while reducing the likelihood that any person or group would gain control of Conn's through open market accumulation or otherwise without appropriately compensating all of the Company's stockholders.