Healthcare company, Covidien plc,(COV), Friday said its Board approved the separation of its pharmaceuticals business from the rest of the company, and transfer of the same to Mallinckrodt plc. The separation will occur by means of dividend declaration in specie of the pharmaceuticals business.
For every eight ordinary shares of Covidien held, Covidien shareholders will receive one ordinary share of Mallinckrodt plc. This distribution is expected to occur on June 28 to Covidien shareholders of record on June 19.
Post the distribution, Mallinckrodt will be an independent publicly traded company whose shares are expected to begin trading on July 1 on the New York Stock Exchange under the ticker MNK. Further, Covidien will retain no ownership interest in Mallinckrodt, and will continue to trade on the NYSE under COV. Covidien currently expects that "when-issued" trading for both Mallinckrodt and Covidien on the NYSE will begin on June 17, 2013.
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