14 DAY TRIAL // On Tuesday, Motorola, Inc. announced officially that it plans on completing the long unveiled separation of its businesses as of January 4, 2011.
Basically, on that day, Motorola Mobility Holdings, Inc. (“Motorola Mobility”) will become a separate entity from Motorola, Inc..
The company announced that it approved the separation through a tax-free dividend that involves the distribution of all Motorola Mobility common stock to shareholders. Moreover, it approved “a reverse stock split of shares of Motorola common stock following the distribution.”
The result of this includes:
- The distribution will be made prior to the market open on Jan. 4, 2011 to Motorola, Inc. stockholders of record as of the close of business on Dec. 21, 2010. - Motorola, Inc. stockholders of record will receive 1 share of Motorola Mobility common stock for every 8 shares of Motorola common stock they hold. - Immediately following the distribution of Motorola Mobility common stock to Motorola stockholders, Motorola will effect a 1-for-7 reverse stock split of Motorola common stock, which will become effective prior to the market open on Jan. 4, 2011.
At the same time, the company announced that, starting with January 4, 2011, it would change its name from Motorola, Inc. to Motorola Solutions, Inc.
Also, starting that day, the company will begin trading on the New York Stock Exchange (NYSE) under the ticker symbol MSI, while Motorola Mobility Holdings, Inc. will begin trading under the ticker symbol MMI.
There is no surprise here, that's for sure, as Motorola unveiled plans to make the separation several months ago, and also said that it aims at completing the move sometime in early 2011.
Additional details on the spin-off of Motorola Mobility, as well as on the announced reverse stock split of Motorola common stock can be found on the company's website here.
“Today’s announcement marks another important milestone toward the upcoming separation that is expected to benefit Motorola, its stockholders, as well as each company’s respective customers and employees,” Greg Brown, Motorola co-CEO and CEO of Motorola Solutions, and Sanjay Jha, Motorola co-CEO and CEO of Motorola Mobility, said in a joint statement.
“We look forward to taking advantage of the opportunities before us as we begin the new year as two independent, publicly traded companies,” they continued.