The liquidation of Altaba, the former Yahoo, is still ongoing.
the foundation said Monday that it would pay out $7.48 per share in cash to its shareholders in early August, after it was given the go-ahead from the Delaware Court of Chancery, which oversees its liquidation.
The $3.9 billion payment to Altaba holders follows a cash distribution of $8.33 per share in October 2020. Altaba’s residual net asset value will be just under $8 per share, Barron’s estimates. The timing of the remaining distributions was not disclosed in Altaba’s statement.
“Further information regarding the amount and timing of any subsequent liquidation distributions to shareholders will be provided in subsequent press releases or filings with the SEC as such information becomes available,” the company said.
Altaba shares have not been publicly traded since October 2019, when they were delisted from the Nasdaq around the time it filed a liquidation and dissolution plan in Delaware after paying out $51.50 per share in cash to holders.
At the end of March 2021, Altaba’s net worth was about $8 billion, almost all of it in short-term government bonds. There are 519.5 million shares outstanding. The March 31 NAV was $15.43 per share.
There has been no publicly traded market for Altaba shares since the delisting. That frustrated many individual investors, who were left with illiquid securities and no price on their broker listings for their Altaba investment, until many brokers started putting a value on the fund last year. Altaba does not have a ticker symbol.
Altaba has kept a low profile since its 2019 delisting. The fund is marked on brokerage charts with a discount from the NAV. An investor told Barron’s that it was recently priced at $14.60 per share. The discount partly reflects that investors have to wait to be paid.
Altaba’s ongoing run-down is part of a complex story that began when Yahoo! sold its core online business to Verizon Communications (VZ) in June 2017 and changed its name to Altaba, a reference to what was then its greatest asset, a valuable 15% stake in Alibaba Group Holding (BABA), the Chinese e-commerce giant.
Altaba, a closed-end fund, then moved to liquidate its Alibaba stake and a smaller stake in Yahoo Japan (YAHOY). Altaba is the largest company ever to liquidate the proceeds of its assets and distribute it to its shareholders.
Altaba was not immediately available for comment.
Altaba withholds money to settle disputed claims. Barron’s reported in February that a remaining issue for Altaba to address was an Internal Revenue Service audit of its tax returns.
Altaba and the IRS agreed that Altaba would withhold approximately $1.7 billion for potential tax liability “subject to agreed mechanisms for the release of this security as portions of the IRS claims are resolved over time.” according to the annual report.
Write to Andrew Bary at email@example.com