CBS Corporation Announces Details Of CBS Outdoor Spinoff, Divestiture
June 11, 2014 at 5:20 AM (PT)
CBS CORPORATION has announced the details of its plan to divest its 81% ownership in CBS OUTDOOR AMERICAS INC. The outdoor division was spun off in an IPO in APRIL and plans to convert to a Real Estate Investment Trust.
In the plan, CBS CORP. will launch an exchange offer that will allow Class B shareholders to swap all, some, or none of their shares for shares of the outdoor company's stock at a 7% discount, capped at 2.1917 shares of CBS OUTDOOR common stock per 1 share of CBS Class B common stock. The offer is voluntary and is expected to be tax-free for CBS Class B shareholders; GOLDMAN SACHS and MORGAN STANLEY are serving as dealer managers for the offer, with JPMORGAN as financial advisor.
Pres./CEO LESLIE MOONVES said, "We are very pleased to be taking this step toward completing our strategic transaction, We fully believe that CBS OUTDOOR will continue to be successful as a stand-alone company. And for our part, CBS CORPORATION can focus on what we do best, which is invest, produce and distribute premium content across all platforms and all around the world."
CBS OUTDOOR CEO JEREMY MALE added, "CBS has been a great owner for many years, but as a wholly independent company, we believe we can take CBS OUTDOOR to new heights. Our expected REIT conversion is an opportunity to create additional long-term value for our shareholders. We're very excited about our future."