Insider filing report for Changes in Beneficial Ownership
- Schedule 13G & 13D forms are used to report a party's ownership of stock which exceeds 5% of a company's total stock issue.
- Schedule 13G is a shorter version of Schedule 13D with fewer reporting requirements.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 4)
FORESTAR GROUP INC.
(Name of Issuer)
Common Stock
(Title of Class of Securities)
346232 101
(CUSIP Number)
Thomas B. Montaño, D.R. Horton, Inc., 1341 Horton Circle Arlington, Texas 76011 (817) 390-8200
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
October 28, 2024
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. ☐
CUSIP No. 346232 101
(1) |
Names Of Reporting Persons.
D.R. Horton, Inc. | |||||
(2) | Check The Appropriate Box If a Member of a Group (See Instructions) (a) ☐ (b) ☒
| |||||
(3) | SEC Use Only
| |||||
(4) | Source of Funds (See Instructions)
N/A | |||||
(5) | Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)
| |||||
(6) | Citizenship or Place of Organization
Delaware |
Number of Shares Beneficially Owned by Each Reporting Person With
|
(7) | Sole Voting Power
31,451,063 | ||||
(8) | Shared Voting Power
0 | |||||
(9) | Sole Dispositive Power
31,451,063 | |||||
(10) | Shared Dispositive Power
0 |
(11) |
Aggregate Amount Beneficially Owned by Each Reporting Person
31,451,063 | |||||
(12) | Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
| |||||
(13) | Percent of Class Represented by Amount in Row (11) A0; 62.1%* | |||||
(14) | Type of Reporting Person (See Instructions)
CO |
* | Calculated in accordance with Rule 13d-3(d)(1), based on 50,653,637 shares of the Issuers common stock outstanding as of September 30, 2024. |
Item 1. Security and Issuer
This Amendment No. 4 (the Amendment) amends Items 1, 4, 6, and 7 of the Schedule 13D (the Original Schedule 13D) originally filed by D.R. Horton, Inc., a Delaware Corporation (D.R. Horton) with the Securities and Exchange Commission (the SEC) on October 12, 2017, as amended by Amendment No. 1 thereto filed by D.R. Horton with the SEC on October 1, 2019, as further amended by Amendment No. 2 thereto filed by D.R. Horton with the SEC on April 21, 2021, and as further amended by Amendment No. 3 thereto filed by D.R. Horton with the SEC on April 18, 2024. This statement on Schedule 13D (the Schedule 13D) relates to the shares of common stock, par value $1.00 per share (the Common Stock), of Forestar Group Inc., a Delaware corporation (the Issuer). The Issuer has its principal executive offices at 2221 E. Lamar Blvd., Suite 790, Arlington, Texas 76006.
This Amendment is being filed to disclose the entry by D.R. Horton and the Issuer into the A&R Stockholders Agreement (as defined below) and provide a description of the amendments contained therein. Except as specifically provided herein, this Amendment does not modify any of the information previously reported on the Schedule 13D.
Item 4. Purpose of Transaction
The information provided in response to Item 6 hereof is hereby incorporated by reference into this Item 4.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer
Stockholders Agreement
On October 28, 2024, the Issuer and D.R. Horton entered into an Amended and Restated Stockholders Agreement, dated as of October 28, 2024 (the A&R Stockholders Agreement), which amends and restates the Stockholders Agreement, dated as of June 29, 2017, between the Issuer and D.R. Horton (the Original Stockholders Agreement).
The Original Stockholders Agreement provided that (i) the Investment Committee (as defined in the Stockholders Agreement) of the Issuer is vested with sole responsibility over investment decisions involving, in any single transaction or a series of related transactions, Capital Expenditures (as defined in the Stockholders Agreement) of $20,000,000 or less, and (ii) prior written consent of D.R. Horton is required before the Issuer acquires (including by way of merger, exchange offer, recapitalization, reorganization, liquidation or dissolution) any business, debt or equity interests, operations or assets of any person, or makes any investment in or loan to any person, in any single transaction or series of related transactions, involving Capital Expenditures (as defined in the Stockholders Agreement) in excess of $20,000,000. These provisions are also included in the Issuers Second Amended and Restated Certificate of Incorporation (the Charter).
The A&R Stockholders Agreement increases each of the $20,000,000 thresholds described above (each, an Approval Threshold) to $45,000,000, subject to an annual increase on the last Tuesday of September or, if the Case-Shiller Index Change (as defined below) has not been published as of such date, such later date that the Case-Shiller Index Change for the relevant period is published (each such date, an adjustment date) by an amount equal to the product of (A) the one-year percentage change reported in the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index (the Case-Shiller Index Change) for the one-year period ending July 31 of the then-current calendar year, expressed as a decimal and (B) the Approval Threshold in effect immediately prior to the applicable adjustment date. Any adjustments to the Approval Threshold shall be rounded to the nearest $100,000. If the Case-Shiller Index Change is negative for any such annual period, there shall be no adjustment, and the then-current Approval Threshold shall remain in effect until the next adjustment date.
The Issuer intends to submit a proposal to amend the Charter consistent with the amendments made in the A&R Stockholders Agreement to the Issuers stockholders for approval at the Issuers 2025 Annual Meeting of Stockholders (the Charter Amendment). Until the Issuers stockholders approve the Charter Amendment, the current provisions of the Charter will remain in effect notwithstanding the entry into the A&R Stockholders Agreement.
Other than as amended by the A&R Stockholders Agreement, the provisions of the Original Stockholders Agreement remain in effect.
The foregoing summary of the A&R Stockholders Agreement does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the A&R Stockholders Agreement, which was filed by D.R. Horton with the Securities and Exchange Commission on November 1, 2024 as Exhibit 10.1 to D.R. Hortons Current Report on Form 8-K, and is incorporated herein by reference.
Item 7. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer
Exhibit 1 | Amended and Restated Stockholders Agreement, dated as of October 28, 2024, by and between Forestar Group Inc. and D.R. Horton, Inc. (filed by D.R. Horton with the Securities and Exchange Commission on November 1, 2024 as Exhibit 10.1 to D.R. Hortons Current Report on Form 8-K, and incorporated by reference herein as Exhibit 1 to this Schedule 13D). |
SIGNATURES
After reasonable inquiry and to the best of its knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.
Dated: November 1, 2024
D.R. HORTON, INC. | ||
By: | /s/ Thomas B. Montaño | |
Name: Thomas B. Montaño | ||
Title: Senior Vice President and Corporate Secretary |