Engineering and construction company McDermott International, Inc. (MDR) Friday said its Board of Directors approved the spin-off of its power generation systems and government operations segments through the distribution of shares of The Babcock & Wilcox Company to holders of McDermott common stock.
McDermott stockholders will receive one share of Babcock & Wilcox or B&W common stock for every two shares of McDermott common stock held at the close of business on July 9. The distribution is expected to occur on July 30.
Fractional shares of B&W common stock will not be distributed, and any such share otherwise issuable to a McDermott stockholder will be sold in the open market on such stockholder's behalf, and the stockholder will receive a cash payment with respect to the share.
Upon closing of the distribution, B&W will operate as a separate, publicly traded company, and the shares of B&W common stock will be listed on the New York Stock Exchange under the symbol BWC.
Commenting on the spin-off, Chief Executive Officer of McDermott, John Fees said, "We believe that as separate, independent, publicly traded entities, B&W and the remaining McDermott will benefit from enhanced management focus, more efficient capital allocation and greater operational and strategic flexibility."
McDermott said no action is required by McDermott stockholders in order to receive shares of B&W common stock. McDermott stockholders entitled to receive the dividend will receive a book-entry account statement reflecting their ownership of shares of B&W common stock.
McDermott anticipates regular-way trading of B&W's common stock to begin on August 2, the first trading day following the distribution date.
MDR is currently trading at $21.56 up $0.44 or 2.08%, on a volume of 1.69 million shares on the NYSE.
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