Boston, MA 09/26/2013 (wallstreetpr) – National-Oilwell Varco, Inc. (NYSE:NOV) is all set to explore a plan via which it will divest its distribution segment. This is something that the company has wanted to do for some time now. It would form 2 separate publicly traded companies. This will help position them in a better manner and their respective services and products can be focused upon better.
Good scale business
Pete Miller, the company’s Chairman said that its distribution business is large enough and scalable enough to operate as a single entity post its 2012, C.E Franklin and Wilson Supply acquisitions. As a separate company this business will have over 415 operations and locations across 26 countries. This would account for approximately 85% of the company’s transmission and distribution segment, for the 6 months that ended 30 July. That segment has posted$2.52B revenue and the revenue of the company as a whole stood at $10.91 billion.
The services
The distribution company will provide maintenance services, and also repair and operate the supplies to the industrial and global-energy markets. Miller said that the distribution-company would also be in a better position for continued profit-growth. The spin-off is slated to be completed in the 1H2014 and will be based on final board and regulatory approval. Shareholder approval is not necessary for the separation.
Wednesday’s trading
In Wednesday’s trading session, National-Oilwell Varco, Inc. (NYSE:NOV) stock rose by 0.53%. The shares opened at a price of $78.66, climbed to an intraday high of $79.88 and headed to a close of $79.10. Approximately 2.34 million shares were traded on Wednesday and an average volume of 2.75 million shares were traded over a period of 30 days. The 52-week low of the shares was $63.08 and the 52-week high was $82.47. The company has a market capitalization of $33.82 billion.
