DST Systems and its largest stockholder, a group led by California billionaire George Argyros, have reached an agreement for the Argyros group to sell about 70 percent of its stake in the company, or about 6.5 million shares.
The Argyros group owns 21.8 percent of DST, a Kansas City-based provider of information processing technology. Under the deal, DST will facilitate a public offering of $450 million worth of stock owned by Argyros, and the company will purchase another $200 million of the group’s stock. DST also agreed to nominate Lynn Dorsey Bleil and John Clark for election to its board of directors.
The deal appears likely to help DST avoid a potential proxy battle at its next shareholders meeting. It follows a contentious exchange between the Argyros group and DST management that saw the shareholder accuse the company of “strategic missteps” and saw DST question the Argyros group’s motives.
Analysts had speculated that the battle between the Argyros group and DST would accelerate the company’s sale of investments and other non-core assets.