Summary
Abbott Laboratories (ABT) announced on November 28, 2012, its Board of Directors has approved the separation of its research-based pharmaceuticals business through a spin-off of 100% of its wholly-owned subsidiary, AbbVie Inc. This separation, termed the Separation and Distribution, is structured as a pro rata dividend of AbbVie common stock to Abbott shareholders. Shareholders of record as of December 12, 2012, will receive one share of AbbVie for each share of ABT they own, with cash to be provided for fractional shares. This strategic move will result in AbbVie operating as an independent, publicly traded company, with Abbott retaining no equity interest. The distribution is anticipated to be effective at 12:01 a.m. on January 1, 2013. This separation is expected to allow each company to focus on its distinct business segments and unlock shareholder value by creating two more specialized entities. Investors should note the forward-looking statements and associated risks outlined in the filing.
Key Highlights
- 1Abbott Laboratories (ABT) is spinning off its research-based pharmaceuticals business into a new, independent, publicly traded company named AbbVie Inc.
- 2The separation will be executed through a pro rata dividend of 100% of AbbVie's outstanding common stock to Abbott shareholders.
- 3Shareholders of record as of December 12, 2012, will receive one share of AbbVie common stock for every share of Abbott stock they hold.
- 4The distribution is expected to be completed by January 1, 2013.
- 5Abbott will not retain any equity interest in AbbVie following the separation.
- 6This move aims to create two distinct companies, each focused on its respective business segments (diversified medical products for Abbott, research-based pharmaceuticals for AbbVie).