Windstream Holdings, Inc. (NASDAQ:WINVV) has announced the initiation of a tax-free spin-off transaction of a few telecommunication network assets into CS&L (Communications Sales and Leasing, Inc). As per the reports, CS&L is one of the well-known real estate investment trust that trade independently. Apart from this spinoff transaction, Windstream also announced the execution of one-for-six reverse stock split of its shares.
What’s In For Shareholders:
All the Windstream shareholders are set to receive one share of Communications Sales and Leasing, Inc for every five shares of Windstream. The transaction is supposed to take place on the basis of number of shares held by investors on April 10, 2015. NASDAQ has decided to set April 27, 2015 as the ex-date for this transaction; hence, all the trades that took place until April 24, 2015 have the right to receive the benefit of this transaction.
Once the distribution of CS&L’s shares is finished, Windstream will initiate a one-for-six reverse stock split of its common stock shares effective at 08:00 pm on April 26.
Management’s Call:
The senior management team of the company is delighted to announce these two news. According to Tony Thomas, Chief Executive Officer and President of Windstream, it’s great to execute spinoff at this time. With the help of this spinoff, Windstream will be able to deliver the value to its shareholders. After the successful execution of this transaction, Windstream will have lesser debt than before; thus, transform into a much stronger company. Windstream’s capacity to invest in its own network for providing advance services to all the customers will enhance significantly in the near future.
As per the reports, this spinoff is a tax-free distribution; hence, doesn’t require any action from investors. The management of Windstream anticipates the shares of CS&L to be deposited into the account of its shareholders latest by April 30, 2015.
