DuPont’s DD fully owned subsidiary – The Chemours Company – has started trading on a ‘‘when-issued” basis on the NYSE under the ticker symbol “CC WI” on Jun 19. The spin-off of Chemours – a company created from DuPont’s performance chemicals businesses – is expected to complete on Jul 1, 2015, subject to customary closing conditions.
Following its separation, Chemours – a leading manufacturer of titanium dioxide (TiO2) – will be a publicly traded company. The entity is expected to start "regular-way" trading on Jul 1, 2015, under the ticker symbol “CC.”
DuPont, on Jun 5, announced pro-rata distribution of common shares of Chemours to holders of DuPont's common stock. The company’s board declared a pro-rata dividend to DuPont stockholders of the outstanding shares of Chemours.
Shareholders of DuPont will get one share of Chemours for every five shares of DuPont they hold on the record date of Jun 23, 2015. The distribution of shares will be made on Jul 1, 2015 (the distribution date). Prior to the distribution date, DuPont will mail an information statement containing information about Chemours and the distribution of Chemours shares to its common stockholders.
Fractional shares of Chemours will not be distributed to DuPont shareholders. These shares will be aggregated and sold in the open market with the net proceeds distributed on a pro-rata basis in cash payments to DuPont stockholders. DuPont stockholders are not required to take any action to receive the distributed shares of Chemours.
DuPont, last week, said that the registration statement on Form 10 for the common stock of Chemours has been declared effective by the U.S. Securities and Exchange Commission ("SEC"). The registration statement contains information regarding the business and spin-off of Chemours. The SEC declaration of effectiveness of the Form 10 represents satisfaction of one of the key conditions for the distribution of common shares of Chemours.
DuPont remains focused on executing strategic actions including portfolio optimization, disciplined capital allocation and cost control. The company is spinning off the performance chemicals unit (Chemours) as it is gradually shifting its focus to high growth, less cyclical businesses including agriculture and nutrition.
DuPont carries a Zacks Rank #3 (Hold).
Better-ranked chemical stocks include LyondellBasell Industries N.V. LYB, Stepan Company SCL and Trecora Resources TREC all with a Zacks Rank #1 (Strong Buy).
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