Summary
This 8-K filing by Tyco Electronics Ltd. (formerly Tyco International Ltd.) on June 8, 2007, announces a significant corporate action: the distribution of all common shares of Tyco Electronics Ltd. to its shareholders. This distribution is a spin-off, creating Tyco Electronics as an independent publicly traded company. Shareholders of Tyco International will receive one share of Tyco Electronics for every four shares of Tyco International they hold as of the record date of June 18, 2007. The distribution is anticipated to be completed on June 29, 2007. This event marks a strategic move to separate the electronics business into its own entity, allowing for potentially distinct strategic focus and valuation for both companies.
Key Highlights
- 1Tyco International Ltd. is distributing all of its common shares in its wholly-owned subsidiary, Tyco Electronics Ltd., to its shareholders.
- 2The distribution will occur via a spin-off, with shareholders receiving one share of Tyco Electronics for every four shares of Tyco International held.
- 3The record date for determining eligibility to receive Tyco Electronics shares is June 18, 2007.
- 4The expected distribution date for the Tyco Electronics shares is June 29, 2007, after the market close.
- 5Fractional shares of Tyco Electronics will not be distributed; instead, shareholders will receive a cash payment for any fractional entitlements.
- 6An Information Statement detailing the distribution and Tyco Electronics' business and management has been filed and will be mailed to shareholders.
Frequently Asked Questions
The main event is the announcement that Tyco International Ltd.'s Board of Directors has approved the distribution of all common shares of its subsidiary, Tyco Electronics Ltd., to Tyco International shareholders. This effectively separates Tyco Electronics into an independent company.
You will receive one share of Tyco Electronics for every four shares of Tyco International you own as of the close of business on June 18, 2007 (the record date). The distribution is expected to occur after the market close on June 29, 2007.
Fractional shares of Tyco Electronics will not be distributed. Instead, any Tyco International shareholder entitled to a fractional share will receive a cash payment for that fractional amount.
More detailed information is available in the Information Statement of Tyco Electronics Ltd., dated June 8, 2007, which is filed as Exhibit 99.1 to this Current Report on Form 8-K and will be mailed to Tyco International shareholders shortly after the record date.