WASHINGTON (dpa-AFX) - Yum! Brands, Inc. (YUM) Monday said its Board has approved the previously announced separation of its China business, now owned by Yum China Holdings, Inc. The separation from Yum! Brands will occur after the close of business on October 31, 2016.
Yum China expects to begin trading 'regular way' as an independent company on November 1 on the New York Stock Exchange under the ticker symbol 'YUMC.' Yum! Brands and Yum China are expected to begin on the NYSE on October 17, under the symbol 'YUM WI' for Yum! Brands and 'YUMC WI' for Yum China.
The Yum! Brands Board also declared an increased dividend of $0.51 per share, payable on November 4, 2016, to shareholders of record as of the close of business on October 19.
Micky Pant, chief executive officer of Yum China said, 'Yum China has a leading position in the Chinese market, and we see tremendous opportunities to leverage our well-recognized brands and decades of experience to drive growth. We are all energized to achieve Yum China's full potential and create sustained value for shareholders.'
Yum! Brands has repurchased approximately $5.1 billion in shares at an average price of approximately $80, reducing its share count by approximately 15 percent as of September 23. It has further plans to repurchase an additional $1.1 billion in shares before the end of 2016.
The Yum! Brands Board has approved a distribution of one share of Yum China common stock for each share of Yum! Brands common stock held at the close of business on October 19.
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