SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 4, 1999
HOME-STAKE OIL & GAS COMPANY
(Exact name of Registrant as specified in its charter)
Oklahoma 0-19766 73-0288030
(State or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification No.)
incorporation)
15 East 5th Street, Suite 2800, Tulsa, Oklahoma 74103
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (918) 583-0178
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ITEM 5. Other Events.
On November 4, 1999, the Board of Directors of Home-Stake Oil & Gas
Company (the "Corporation") adopted a new shareholder rights plan to replace the
Corporation's existing shareholder rights plan that will expire on January 3,
2000, and declared a dividend distribution of one preferred share purchase right
(a "Right") for each outstanding share of Common Stock, par value $.01 per share
(the "Common Shares"), of the Corporation. The dividend is payable to the
shareholders of record of the Corporation on January 3, 2000 (the "Record
Date"), and with respect to Common Shares issued thereafter until the
Distribution Date (as defined below) and, in certain circumstances, with respect
to Common Shares issued after the Distribution Date. Except as set forth below,
each Right, when it becomes exercisable, entitles the registered holder to
purchase from the Corporation one one-thousandth of a share of Series A Junior
Participating Preferred Stock, with a par value of $1.00 per share, of the
Corporation (the "Preferred Shares") at a price of $22.00 per one one-thousandth
of a Preferred Share (the "Purchase Price"), subject to adjustment. The
description and terms of the Rights are set forth in a Rights Agreement, as the
same may be amended from time to time (the "Rights Agreement"), between the
Corporation and UMB Bank, N.A., as Rights Agent, dated as of January 3, 2000.
Initially, the Rights will be attached to all certificates representing
Common Shares then outstanding, and no separate Right Certificates will be
distributed. The Rights will separate from the Common Shares upon the earlier to
occur of (i) the first date of public announcement of a person or group of
affiliated or associated persons having acquired beneficial ownership of 15% or
more of the outstanding Common Shares (except pursuant to a Permitted Offer, as
hereinafter defined); or (ii) 10 days (or such later date as the Board of
Directors of the Corporation (the "Board") may determine) following the
commencement of, or announcement of an intention to make, a tender offer or
exchange offer the consummation of which would result in a person or group
becoming an Acquiring Person (as hereinafter defined) (the earlier of such dates
being called the "Distribution Date"). A person or group whose acquisition of
Common Shares causes a Distribution Date pursuant to clause (i) above is an
"Acquiring Person." The first date of public announcement that a person or group
has become an Acquiring Person is the "Shares Acquisition Date."
The Rights Agreement provides that, until the Distribution Date, the
Rights will be transferred with and only with the Common Shares. Until the
Distribution Date (or earlier redemption or expiration of the Rights) new Common
Share certificates issued after the Record Date upon transfer or new issuance of
Common Shares will contain a notation incorporating the Rights Agreement by
reference. Until the Distribution Date (or earlier redemption or expiration of
the Rights), the surrender for transfer of any certificates for Common Shares
outstanding as of the Record Date, even without such notation or a copy of this
Summary of Rights being attached thereto, will also constitute the transfer of
the Rights associated with the Common Shares represented by such certificate. As
soon as practicable following the Distribution Date, separate certificates
evidencing the Rights ("Right Certificates") will be mailed to holders of record
of the Common Shares as of the close of business on the Distribution Date (and
to each initial record holder of
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certain Common Shares issued after the Distribution Date), and such separate
Right Certificates alone will evidence the Rights.
The Rights are not exercisable until the Distribution Date and will
expire at the close of business on January 3, 2010, unless earlier redeemed or
exchanged by the Corporation as described below.
In the event that any person or group becomes an Acquiring Person
(except pursuant to a tender or exchange offer which is for all outstanding
Common Shares at a price and on terms which a majority of certain members of the
Board determines to be adequate and in the best interests of the Corporation,
its shareholders and other relevant constituencies, other than such Acquiring
Person, its affiliates and associates (a "Permitted Offer")), each holder of a
Right will thereafter have the right (the "Flip-In Right") to receive upon
exercise, in lieu of Preferred Shares, the number of Common Shares (or, in the
discretion of the Board, one one-thousandths of a Preferred Share or, in certain
circumstances, other securities of the Corporation) having a value (immediately
prior to such triggering event) equal to two times the exercise price of the
Right. Notwithstanding the foregoing, following the occurrence of the event
described above, all Rights that are, or (under certain circumstances specified
in the Rights Agreement) were, beneficially owned by any Acquiring Person or any
affiliate or associate thereof will be null and void.
In the event that, at any time following the Shares Acquisition Date,
(i) the Corporation is acquired in a merger or other business combination
transaction in which the holders of all of the outstanding Common Shares
immediately prior to the consummation of the transaction are not the holders of
all of the surviving corporation's voting power, or (ii) more than 50% of the
Corporation's assets or earning power is sold or transferred, then each holder
of a Right (except Rights which previously have been voided as set forth above)
shall thereafter have the right (the "Flip-Over Right") to receive, upon
exercise, common shares of the acquiring company having a value equal to two
times the exercise price of the Right. The holder of a Right will continue to
have the Flip-Over Right whether or not such holder exercises or surrenders the
Flip-In Right.
The Purchase Price payable, and the number of Preferred Shares, Common
Shares or other securities issuable, upon exercise of the Rights are subject to
adjustment from time to time to prevent dilution (i) in the event of a stock
dividend on, or a subdivision, combination or reclassification of, the Preferred
Shares, (ii) upon the grant to holders of the Preferred Shares of certain rights
or warrants to subscribe for or purchase Preferred Shares at a price, or
securities convertible into Preferred Shares with a conversion price, less than
the then current market price of the Preferred Shares or (iii) upon the
distribution to holders of the Preferred Shares of evidences of indebtedness or
assets (excluding regular quarterly cash dividends) or of subscription rights or
warrants (other than those referred to above).
The Purchase Price and number of outstanding Rights are also subject to
adjustment in the event of a stock split of the Common Shares or a stock
dividend on the Common Shares payable in
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Common Shares or subdivisions, consolidations or combinations of the Common
Shares occurring, in any such case, prior to the Distribution Date.
Preferred Shares purchasable upon exercise of the Rights will not be
redeemable. Each Preferred Share will be entitled to a minimum preferential
quarterly dividend payment of $10.00 per share but, if greater, will be entitled
to an aggregate dividend per share of 1,000 times the dividend declared per
Common Share. In the event of liquidation, the holders of the Preferred Shares
will be entitled to a minimum preferential liquidation payment of $1,000 per
share; thereafter, and after the holders of the Common Shares receive a
liquidation payment of $1.00 per share, the holders of the Preferred Shares and
the holders of the Common Shares will share the remaining assets in the ratio of
1,000 to 1 (as adjusted) for each Preferred Share and Common Share so held,
respectively. Each Preferred Share will have 1,000 votes, voting together with
the Common Shares. Finally, in the event of any merger, consolidation or other
transaction in which Common Shares are exchanged, each Preferred Share will be
entitled to receive 1,000 times the amount received per Common Share. These
rights are protected by customary antidilution provisions. In the event that the
amount of accrued and unpaid dividends on the Preferred Shares is equivalent to
six full quarterly dividends or more, the holders of the Preferred Shares shall
have the right, voting as a class, to elect two directors in addition to the
directors elected by the holders of the Common Shares until all cumulative
dividends on the Preferred Shares have been paid through the last quarterly
dividend payment date or until non-cumulative dividends have been paid regularly
for at least one year.
With certain exceptions, no adjustment in the Purchase Price will be
required until cumulative adjustments require an adjustment of at least 1% in
such Purchase Price. No fractional Preferred Shares will be issued (other than
fractions which are one one-thousandth or integral multiples of one
one-thousandth of a Preferred Share, which may, at the election of the Board, be
evidenced by depositary receipts) and in lieu thereof, an adjustment in cash
will be made based on the market price of the Preferred Shares on the last
trading day prior to the date of exercise.
At any time prior to the earlier to occur of (i) a person becoming an
Acquiring Person or (ii) the expiration of the Rights, and under certain other
circumstances, the Corporation may redeem the Rights in whole, but not in part,
at a price of $.01 per Right (the "Redemption Price") which redemption shall be
effective upon the action of the Board. Additionally, following the Shares
Acquisition Date, the Corporation may redeem the then outstanding Rights in
whole, but not in part, at the Redemption Price, provided that such redemption
is in connection with a merger or other business combination transaction or
series of transactions involving the Corporation in which all holders of Common
Shares are treated alike but not involving an Acquiring Person or its affiliates
or associates.
At any time after any person or group becomes an Acquiring Person and
prior to the acquisition by such person or group of 50% or more of the
outstanding Common Shares, the Board may exchange the Rights (other than Rights
owned by the Acquiring Person, which will have become void), in whole or in
part, at an exchange ratio of one Common Share, or one one-thousandth of a
Preferred Share (or of a share of a class or series of the Corporation's
preferred stock having equivalent rights, preferences and privileges), per Right
(subject to adjustment).
All of the provisions of the Rights Agreement may be amended by the
Board prior to the Distribution Date. After the Distribution Date, the
provisions of the Rights Agreement may be amended by the Board only in order to
cure any ambiguity, defect or inconsistency, to make changes which do not
adversely affect the interests of holders of Rights (excluding the interests of
any Acquiring Person), or, subject to certain limitations, to shorten or
lengthen any time period under the Rights Agreement.
Until a Right is exercised or exchanged, the holder thereof, as such,
will have no right to vote or receive dividends and will have no other rights as
a shareholder of the Corporation. While the distribution of the Rights will not
be taxable to shareholders of the Corporation, shareholders may, depending upon
the circumstances, recognize taxable income should the Rights become exercisable
or upon the occurrence of certain events thereafter.
A copy of the Rights Agreement has been filed with the Securities and
Exchange Commission as an Exhibit to the Corporation's Registration Statement on
Form 8-A dated December 22, 1999. A copy of the Rights Agreement is available
free of charge from the Corporation. This summary description of the Rights does
not purport to be complete and is qualified in its entirety by reference to the
Rights Agreement, which is hereby incorporated herein by reference.
The press release issued by the Corporation on November 4, 1999, with
respect to the Rights, is attached hereto as an exhibit and incorporated herein
by reference.
ITEM 7. Financial Statements and Exhibits.
(c) Exhibits
99.1 Press Release dated November 4, 1999.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HOME-STAKE OIL & GAS COMPANY
December 22, 1999 By: /s/ Chris K. Corcoran
--------------------------------
Chris K. Corcoran
Executive Vice President,
Chief Financial Officer and Secretary
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EXHIBIT INDEX
Exhibit Number Description
99.1 Press Release dated November 4, 1999.
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NEWS RELEASE
Home-Stake Oil & Gas Company
Tulsa, Oklahoma November 4, 1999
HOME-STAKE OIL & GAS COMPANY ADOPTS NEW
SHAREHOLDER RIGHTS PLAN AND ANNOUNCES
A CASH DIVIDEND INCREASE.
The Board of Directors of Home-Stake Oil & Gas Company (Nasdaq: HSOG)
today announced the adoption of a new shareholder rights plan to replace its
existing shareholder rights plan that will expire on January 3, 2000, and
declared a dividend distribution of one Preferred Share Purchase Right on each
outstanding share of Home-Stake common stock.
Robert C. Simpson, Chairman, President and CEO of Home-Stake, stated:
"The Rights are designed to assure that all of Home-Stake's shareholders receive
fair and equal treatment in the event of any proposed takeover of the Company
and to guard against partial tender offers, squeeze-out mergers, open market
accumulations and other abusive tactics to gain control of Home-Stake without
paying all shareholders a fair price. The Rights will not prevent a takeover but
should encourage anyone seeking to acquire the Company to negotiate with the
Board prior to attempting a takeover. This action is not in response to any
specific effort to acquire the Company. The Rights are intended to enable all
shareholders to realize the long-term value of their investment in Home-Stake."
The Rights will be exercisable only if a person or group acquires 15%
or more of Home-Stake's common stock or announces a tender offer the
consummation of which would result in ownership by a person or group of 15% or
more of the common stock. Each Right will entitle shareholders to buy one
one-thousandth of a share of a new series of junior participating preferred
stock at an exercise price of $22.00.
If the Company is acquired in a merger or other business combination
transaction after a person has acquired 15% or more of the Company's outstanding
common stock, each Right will entitle its holder to purchase, at the Right's
then-current exercise price, a number of the acquiring company's common shares
having a market value of twice such price. In addition, if a person or group
acquires 15% or more of the Company's outstanding common stock, each Right will
entitle its holder (other than such person or members of such group) to
purchase, at the Right's then-current exercise price, a number of Home-Stake's
common shares having a market value of twice such price.
Prior to the acquisition by a person or group of beneficial ownership
of 15% or more of the Company's common stock, the Rights are redeemable for one
cent per Right at the option of the Company's Board of Directors.
The dividend distribution will be made on January 3, 2000, payable to
shareholders of record on that date. The Rights will expire on January 3, 2010.
The Rights distribution is not taxable to shareholders.
In other news, the Company's Board of Directors declared a 50% increase
in the dividend for the fourth quarter. The declared dividend of $ .03 per share
is payable December 15, 1999 to stockholders of record at the close of business
on November 30, 1999.
Home-Stake Oil & Gas Company is an independent oil and gas company
engaged in the exploration, production, development and acquisition of oil and
gas properties. The Company is listed on the Nasdaq Small Cap Market, trading
under the symbol "HSOG."
The information included in this announcement may include "forward looking"
statements. All statements, other than statements of historical facts, which
address activities, events or developments that the Company expects or
anticipates will or may occur in the future are forward looking statements. A
number of risks and uncertainties could cause actual results and developments to
differ materially from these statements. A complete discussion of these risks
and uncertainties is contained in the Company's reports and documents filed from
time to time with the SEC.
CONTACT: Robert C. Simpson (918) 583-0178
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