Comverse Technology, Inc. (NASDAQ: CMVT) has announced that it plans to distribute 100% of the shares of its wholly-owned subsidiary Comverse, Inc. to shareholders on a pro rata basis.
The company is exploring and will finalize a structure “that will result in the most efficient method of distribution, with the distribution expected to occur in the second half of fiscal 2012.” The company is also exploring alternatives to eliminate its holding company structure.
The company noted, “We are confident that by creating an independent, well-capitalized Comverse, CTI and its shareholders will be able to benefit from increased strategic flexibility at Comverse and with its stake in Verint. The elimination of the holding company structure is cost-effective and allows for the separation of assets in a tax efficient manner.”
There are still some hurdles, like a vote, a favorable tax ruling, a proper structure, and more.
Shares are trading at $6.55 and the pre-market trading has the shares down around $6.40. The pre-news market cap is almost $1.4 billion here.
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
