Boston, MA 09/18/2014 (wallstreetpr) – Bio-analytical and electronic measurement solutions provider, Agilent Technologies Inc. (NYSE:A) disclosed that its board has given its nod to spin-off Keysight Technologies Inc. The company has also cheered its investors by declaring a special dividend through the distribution of Keysight Technologies shares to every shareholder of Agilent.
Special Dividend
The company’s board decision meant that Agilent and Keysight would become a separate entity, its statement indicated. As a result, for every two shares of Agilent, its shareholders would be given one share of Keysight common stock. The company indicated that there would not be any fractional of shares of Keysight to be issued. Therefore, shareholders would be paid cash in respect of fractional shares.
Agilent expects to complete the special dividend distribution by November 1 as record date of October 22 has been fixed to determine the eligible shareholders since there was no action required by the shareholders of Agilent.
The company indicated that the distribution would also complete the formation spin-off of its electronic measurement division from Agilent Technologies Inc. (NYSE:A). Once the two companies become a different entity, both would be a publicly traded company and would remain independent. Keysight would be traded under the symbol KEYS while there is no change in Agilent symbol.
No Ownership
The completion of the spin-off process would also mean that Agilent Technologies Inc. (NYSE:A) would not have any ownership interest in Keysight. Agilent would concentrate its attention the diagnostics, life sciences, and applied chemical markets.
The company also clarified that there would not be any tax loss or gains due to the special dividend distribution under the federal income tax laws of the U.S. However, cash received in respect of fractional shares would attract tax.
Dividend Announcement
Agilent Technologies Inc. (NYSE:A) also said that its board has declared a quarterly cash dividend of 13.2 cents a share. The dividend would be paid to those shareholders name appearing in the record books on September 30. It has set October 22 for paying a dividend.
