Boston, MA 10/28/2013 (wallstreetpr) – The management of the E I Du Pont De Nemours And Co (NYSE:DD) chemical business unit will be unveiled early next year ahead of the spinoff in 2015. Spun off of this business division has been a long time coming, with the decision taking nearly more than a year to be arrived at. But now all is set for the spinoff within the coming two years. In the Q3.13 results, DuPont made its second-largest revenue from this business unit. The chemical unit recorded $.17 billion in sales and realized $254 million in operating earnings. The chemical division makes house paints and nonstick frying pans.
In deciding the fate of the division, the company advisers studied various options among them spinoff and outright selling of the unit. But the advisers decided against sale to avoid too much tax liability due to the unit’s low cost basis. Instead, a spinoff ensured that there was no any tax hit to the investors since there was no money changing hands. Without any actual selling of shares, spinoff was in the best interest of the shareholders and thus the advisers favored it over outright sale. Also, sale of the division would also have come with a lot of execution risks which the parent company wanted to avoid.
For a smooth spinoff, DuPont is making preparations such as separation of the division’s information technology systems, filing with SEC among other restructuring steps. In the NYSE exchange market, investors reacted positively to the spinoff news, sending the company’s shares 0.85% up in the regular trading session. In the after hours, the stock continued its upward rally, rising 3%.
The company has declared dividend payout of $0.45 per share for the Q3.13. This dividend payout represents $1.80 annualized dividend and 2.93 yield. The declared dividend will be paid to investors of record November 15, on December 13.
