CBS Corporation Gets IRS OK To Convert CBS Outdoor Into REIT
April 17, 2014 at 4:19 AM (PT)
CBS CORPORATION has received a favorable private letter ruling from the IRS for its plan to convert its CBS OUTDOOR AMERICAS INC. subsidiary to a real estate investment trust (REIT). The ruling follows the completion of CBS OUTDOOR's IPO of 19% of its shares. CBS CORP. plans to divest its 81% stake in CBS OUTDOOR through a tax-free split-off later this year and then elect and qualify CBS OUTDOOR to be taxed as a REIT.
President/CEO LES MOONVES said “CBS OUTDOOR’s conversion into a REIT will unlock its true value, and the completion of our Outdoor initiatives will enhance our ability to return capital to our shareholders. We’re very pleased with the way CBS OUTDOOR has launched as a public company, and with this favorable IRS ruling, we look forward to great success in the future.”