Alaska Power & Telephone Company Adopts Shareholder Rights Plan

If triggered, the rights offer eligible holders a 50% discount to market price while the acquiring person's rights become void.

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10/05/2026 - 12:00 PM

KETCHIKAN, Alaska--(BUSINESS WIRE)-- Alaska Power & Telephone Company (OTCMKTS: APTL) (the “Company”) announced today that its Board of Directors has adopted a shareholder rights plan (the “Rights Plan”) designed to protect the interests of the Company and its shareholders.

The Rights Plan is designed to ensure fair and equal treatment of all shareholders in the event of an unsolicited attempt to acquire or control the Company, and to protect against coercive acquisition tactics or stealth accumulation of shares without offering all shareholders fair value for their investment. It was not adopted in response to any known acquisition proposal or specific threat. The Rights Plan preserves the Board's ability to evaluate any proposal and to negotiate for the benefit of all shareholders, while not preventing a transaction the Board approves.

KEY TERMS

Under the Rights Plan, the Board declared a dividend of one right (a “Right”) for each outstanding share of the Company’s common stock. The dividend is payable to shareholders of record as of the close of business on September 30, 2026. Each Right, when exercisable, represents the right to purchase one share of common stock at a purchase price of $422.50, subject to adjustment.

The Rights are not currently exercisable. They will become exercisable only if a person or group acquires beneficial ownership of 15% or more of the Company’s outstanding common stock without Board approval.

If the Rights become exercisable, each Right will entitle the holder (other than the acquiring person, whose Rights become void) to purchase shares of common stock having a market value of twice the exercise price, representing a 50% discount to market price. This is intended to provide a strong economic incentive for any potential acquirer to negotiate with the Board rather than attempt a hostile acquisition.

The Board may exchange each Right for one share of common stock at any time after the Rights become exercisable but before the acquiring person holds 50% or more of the outstanding common stock.

The Rights Plan includes protections for Sealink Networks, Inc., the Company’s majority-owned subsidiary.

The Board may redeem the Rights for $0.01 per Right at any time before any person becomes an acquiring person. The Rights expire on September 30, 2036, unless earlier redeemed or exchanged.

The Rights Plan is not intended to interfere with any merger, acquisition, or other business combination approved by the Board.

The Rights Plan provides that the Company’s Employee Stock Ownership Plan and certain existing shareholders are not considered acquiring persons solely by reason of their current holdings.

ABOUT ALASKA POWER & TELEPHONE COMPANY

Alaska Power & Telephone Company (OTCMKTS: APTL) is an employee-owned, community-minded telecom and power utility delivering advanced broadband, communications, and energy solutions across more than 40 rural and remote Alaskan communities. The Company is the majority owner of Sealink Networks, Inc., which provides critical connectivity between subsea and terrestrial fiber systems across the Pacific Northwest and beyond. The Company’s common stock trades on the OTC marketplace under the symbol “APTL.”

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are based on management’s current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. The Company does not undertake any obligation to publicly update or revise any forward-looking statements. Additional information about the Company is available through the OTC Markets disclosure page at www.otcmarkets.com.