WASHINGTON (dpa-AFX) - The ODP Corp. (ODP), a provider of business services, products and digital workplace technology solutions through an integrated B2B distribution platform, said Wednesday it has completed its previously announced holding company reorganization.
The company has created a newly-formed public company named 'The ODP Corporation' and implemented a 1-for-10 reverse stock split effective June 30, 2020.
ODP Corp. replaces Office Depot as the public company trading on Nasdaq under the ticker symbol 'ODP'.
ODP Corp. noted that all outstanding shares of Office Depot were automatically converted into shares of common stock in ODP Corp., and Office Depot now operates as a wholly-owned subsidiary of the company.
This holding company reorganization is intended to be a tax-free transaction for federal income tax purposes for the company's shareholders.
ODP Corp. expects the holding company reorganization to simplify its legal entity and tax structure, more closely align the company's operating assets to their respective operating channels within the legal entity structure, and increase its operational flexibility.
ODP Corp. noted that neither the holding company reorganization nor the reverse stock split resulted in a change in the directors, executive officers, management or business of the company.
The reverse stock split will affect all holders of common stock uniformly and will not change any shareholder's percentage ownership interest in the company, except that it would result in a shareholder owning a fractional share. No fractional shares of common stock will be issued in connection with the reverse stock split, the company said.
According to ODP Corp., shareholders who would have otherwise been entitled to a fractional share of common stock due to the reverse stock split will instead be entitled to receive a cash payment in lieu of the fractional shares.
In addition, the rights, privileges and interests of the company's shareholders will remain the same with respect to the new holding company.
The company noted that the limited duration shareholder rights plan, previously announced on May 6, 2020, will continue to apply to its shares. The shareholder rights plan will expire on May 4, 2021, with no further action required to be taken by the ODP board of directors.
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