Finally, the much-awaited separation of Hertz Global Holdings Inc.’s (HTZ - Free Report) car rental and equipment rental business has reached its last leg as shareholders formally approved the separation, which is expected to be completed on Jun 30, 2016. Investors rejoiced on this announcement as the company’s stock jumped nearly 7.2%.
Details of Split
As already known, the separation will give rise to two entities: Hertz Rental Car Holding Company, which will change its name to Hertz Global Holdings Inc. and retain the ticker symbol “HTZ”, and Herc Holdings Inc., which will trade on the NYSE as “HRI”. While Hertz Global will comprise the company’s worldwide rental car business and leasing business of Donlen Corporation, Herc Holdings will include the global equipment rental business.
Following shareholders’ approval for the transaction, the company also announced the terms of the transaction. The terms include a dividend distribution of the capital stock of the new entity – Hertz Rental Car Holding Company Inc., retaining the name Hertz Global Holdings Inc. The dividend is payable to existing Hertz Global Holdings' shareholders of record as of June 22, 2016.
This implies that shareholders holding the stock as of the record date will receive shares of Hertz Rental Car Holding Company Inc. on Jun 30, 2016 distribution date. As part of the distribution, shareholders will receive one share for every five shares currently held. Also, every share of the existing company will represent one share of Herc Holdings. However, soon after the separation, these shares will be adjusted for a 1-for-15 reverse stock split.
Following the completion of the transaction, both companies will start regular-way trading on the NYSE on Jul 1, 2016. However, the company expects the two new entities to start trading on a when-issued basis on Jun 20, 2016, which is two days prior to the ex-distribution date.
Further, as part of the separation, the expected members of the board of directors of Herc Holdings were appointed. Herc Holdings has been gearing up for its separation from the parent company since Mar 2014, when Hertz announced the decision to split into two independent, publicly traded companies.
Through this separation, the two companies will be able to concentrate on their respective core businesses, which will help in boosting shareholder value.
Hertz currently carries a Zacks Rank #5 (Strong Sell).
Stocks to Consider
Some better-ranked stocks in the business services industry include Core-Mark Holding Company, Inc. , WageWorks Inc. and Sajan Inc. , each carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Finally, the much-awaited separation of Hertz Global Holdings Inc.’s (HTZ - Free Report) car rental and equipment rental business has reached its last leg as shareholders formally approved the separation, which is expected to be completed on Jun 30, 2016. Investors rejoiced on this announcement as the company’s stock jumped nearly 7.2%.
Details of Split
As already known, the separation will give rise to two entities: Hertz Rental Car Holding Company, which will change its name to Hertz Global Holdings Inc. and retain the ticker symbol “HTZ”, and Herc Holdings Inc., which will trade on the NYSE as “HRI”. While Hertz Global will comprise the company’s worldwide rental car business and leasing business of Donlen Corporation, Herc Holdings will include the global equipment rental business.
Following shareholders’ approval for the transaction, the company also announced the terms of the transaction. The terms include a dividend distribution of the capital stock of the new entity – Hertz Rental Car Holding Company Inc., retaining the name Hertz Global Holdings Inc. The dividend is payable to existing Hertz Global Holdings' shareholders of record as of June 22, 2016.
This implies that shareholders holding the stock as of the record date will receive shares of Hertz Rental Car Holding Company Inc. on Jun 30, 2016 distribution date. As part of the distribution, shareholders will receive one share for every five shares currently held. Also, every share of the existing company will represent one share of Herc Holdings. However, soon after the separation, these shares will be adjusted for a 1-for-15 reverse stock split.
Following the completion of the transaction, both companies will start regular-way trading on the NYSE on Jul 1, 2016. However, the company expects the two new entities to start trading on a when-issued basis on Jun 20, 2016, which is two days prior to the ex-distribution date.
Further, as part of the separation, the expected members of the board of directors of Herc Holdings were appointed. Herc Holdings has been gearing up for its separation from the parent company since Mar 2014, when Hertz announced the decision to split into two independent, publicly traded companies.
Through this separation, the two companies will be able to concentrate on their respective core businesses, which will help in boosting shareholder value.
Hertz currently carries a Zacks Rank #5 (Strong Sell).
Stocks to Consider
Some better-ranked stocks in the business services industry include Core-Mark Holding Company, Inc. , WageWorks Inc. and Sajan Inc. , each carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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