Avis Budget Announces New Cooperation Agreement With SRS - Quick Facts

(RTTNews) - Avis Budget Group, Inc. (CAR) announced a new cooperation agreement with SRS Investment Management, LLC, the company's largest shareholder. SRS will vote all of its shares in favor of the company's nominees and other proposals at any meeting of the shareholders during the standstill period, subject to certain exceptions. The company said SRS will be permitted to increase its equity ownership stake in the company to 20% of the shares outstanding and has committed to vote any shares in excess of 20% in proportion to the other shareholders.

The terms of the new cooperation agreement include the appointment to the Avis Budget Group Board of Jagdeep Pahwa, the President of SRS, and Carl Sparks, an independent candidate nominated by SRS, effective April 20, 2018, which will temporarily expand the Board to 14 members. Brian Choi, a partner at SRS and Board member since 2016, and Sanoke Viswanathan, an independent director nominated to the Board by SRS in 2016, will be re-nominated to the Board. The company has agreed that at the 2019 Annual Meeting, one incumbent director will not stand for reelection, reducing the size of the Board to 12 directors.

The company also announced that, effective April 16, 2018, it is terminating the Shareholder Rights Plan it adopted in January 2018.