Synlogic approves shareholder rights plan, authorizes dividend distribution

Synlogic announced that its board has approved the adoption of a limited duration shareholder rights plan and authorized a dividend distribution of one right for each outstanding share of common stock. The dividend distribution will be made on March 1, payable to stockholders of record on that date, and is not taxable to stockholders. The rights plan is effective immediately and has a one-year duration, expiring on February 20, 2025. The board adopted the rights plan following an “unsolicited accumulation of Synlogic shares by a certain investor.” A rights plan will enable the board and management “to protect stockholders while fulfilling its fiduciary responsibilities to review and evaluate strategic alternatives intended to maximize long-term value for all Synlogic stockholders. This will include consideration of various options and proposals, as warranted,” the company said in a statement. Synlogic says the plan will reduce the likelihood that any entity, person, or group gains control of the company through open market accumulation “without paying all stockholders an appropriate control premium or without providing the Board sufficient time to make informed judgments and take actions that are in the best interests of stockholders.”