Xerox Corporation (XRX - Free Report) announced yesterday that it has got shareholders’ approval for reorganization as a wholly-owned subsidiary of a new holding company. The company previously unveiled this reorganization plan in March.
The proposal got favorable votes from holders of around 99.7% of common shares present and voting at Xerox’s annual meeting, representing around 77% of the company’s total outstanding common shares.
The reorganization remains subject to customary closing conditions such as without limitation and receipt of approval from the Financial Conduct Authority of the United Kingdom. Xerox aims to complete the process by the end of the third quarter of 2019.
Shares of the new holding company is expected to trade under Xerox’s current ticker “XRX” on the New York Stock Exchange.
Xerox stated earlier that the move is aimed at attaining greater strategic, operational as well as financial flexibility and does not involve any change in operations, directors and executive officers.
We believe that the move will help the company protect patents, reduce tax bill and diversify businesses efficiently. It will complement its Strategic Transformation program to achieve productivity and cost reduction, and aggressive product development efforts.
Shares of Xerox have gained a massive 66.5% year to date, substantially outperforming the 36.7% rally of the industry it belongs to.
Zacks Rank & Other Stocks to Consider
Currently, Xerox is a Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few other top-ranked stocks in the broader Zacks Business Services sector include Navigant Consulting , WEX (WEX - Free Report) and FLEETCOR Technologies (FLT - Free Report) . While Navigant Consulting sports a Zacks Rank #1, WEX and FLEETCOR carry a Zacks Rank #2.
Long-term expected EPS (three to five years) growth rate for Navigant Consulting, WEX and FLEETCOR is 13.5%, 15% and 16.5%, respectively.
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