WASHINGTON (dpa-AFX) - VORNADO REALTY TRUST (VNO) announced its Board of Trustees has approved a tax-free spin-off of its Washington, DC business, currently known as Vornado/Charles E. Smith, and that it has entered into a definitive agreement to merge SpinCo with the operating company and certain select assets of The JBG Companies, a Washington, DC real estate company. The combined company will be named JBG SMITH Properties.
JBG SMITH intends to be listed on the NYSE under the ticker symbol JBGS. Vornado shareholders are expected to own approximately 74% of the combined company, JBG limited partners are expected to own approximately 20%, and JBG management is expected to own approximately 6%. The combination is expected to result in approximately $35 million of synergies.
JBG SMITH's Board of Trustees will consist of twelve members, a majority of whom will be independent. Vornado and JBG will each designate six trustees. Steven Roth, Vornado's Chairman and CEO, will be Chairman of the Board. Vornado anticipates that the combination of Vornado's and JBG SMITH's dividends will be at least equal to Vornado's current annualized dividend of $2.52 per share.
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