Summary
Automatic Data Processing Inc. (ADP) announced a significant corporate event with its Board of Directors establishing the record date for the spin-off of its Dealer Services business unit, which will operate as a new independent company, CDK Global, Inc. This strategic move is expected to allow both ADP and CDK Global to focus on their respective core businesses and potentially unlock greater shareholder value. Investors should note the key dates for this separation.
Key Highlights
- 1ADP's Board of Directors has set the record date for the spin-off of its Dealer Services business, now named CDK Global, Inc.
- 2The separation is planned as a distribution of CDK Global shares to ADP shareholders.
- 3Shareholders of record as of the close of business on September 24, 2014, will receive shares of CDK Global.
- 4The anticipated distribution date for CDK Global shares is after the close of business on September 30, 2014.
- 5CDK Global stock is expected to commence "when-issued" trading on NASDAQ under the symbol "CDKVV" starting September 22, 2014.
- 6"Regular way" trading for CDK Global shares is anticipated to begin on October 1, 2014, under the symbol "CDK".