Boston, MA 06/12/2014 (wallstreetpr) – CBS Corporation (NYSE:CBS) on June 11, 2014 announced that it will be divesting 81% ownership in CBS Outdoor Americas Inc (CBSO), thereby converting CBSO into real estate investment trust (REIT).
CBS’s Plans of Divestment
CBS Corporation (NYSE:CBS) explained that it will divest the ownership of CBSO in such a way that the exchange would become completely tax free for the shareholders in the U.S. The exchange is seen as the final move of CBS to separate CBSO from CBS. In the exchange offer, the owners of the CBS stock will be given an option to exchange their CBS Class B common stock into the shares of CBS Outdoors common stock and that too at a discount of 7%. This comes with a condition that the upper limit of CBS Outdoor shares for every Class B Common stock should be 2.1917.
The Tax-Free Exchange Offer For The Shareholders
CBS Corporation, in its exchange offer will allow the Class B shareholders to convert all or a few or none of the shares of outdoor company’s stock at a 7% discount with a limit of 2.1917 shares of CBS outdoor common stock for every single share of CBS Class B common stock.
The offer is completely autonomous for the shareholders and will be absolutely tax-free for CBS Class B shareholders. The dealer managers for this offer will be MORGAN STANLEY and GOLDMAN SACHS. The financial adviser of the offer will be JPMORGAN.
Comments From The CBS Corporation President And CEO
The CBS Corporation (NYSE:CBS) President and CEO, Leslie Moonves said in the press release that the company was taking this step for completing the strategic transaction. Moonves added that the company believes that CBS Outdoor will still remain successful even with that stand-alone status. This action, Leslie Moonves explained, will allow CBS Corporation to focus on the hard core business of the company and the ability to invest, produce and distribute premium content to the different platforms of the world.