Harris Corporation's Lanier Worldwide, Inc. Subsidiary Files Spin-Off
Registration Statement
Business Editors
MELBOURNE, Fla. and ATLANTA--(BUSINESS WIRE)--July 6, 1999--
Harris Corporation (NYSE:HRS) today announced that its wholly owned
subsidiary, Lanier Worldwide, Inc., has filed with the Securities and
Exchange Commission a Registration Statement relating to its
previously announced spin-off. The Form 10 Registration Statement
contains historical and pro forma financial statements and information
about Lanier's business, management, and financial position.
In the spin-off, which is expected to be formally approved by the
Harris Board of Directors in late August and completed in September,
each Harris stockholder will receive one share of Lanier common stock
for each share of Harris stock. Harris will retain approximately 10%
of the outstanding shares of Lanier. Harris will agree not to sell
such shares for six months following the spin-off, although it does
intend to sell all such shares within two years of the spin-off.
Harris will use the cash from sales of Lanier shares to make
acquisitions in the communications equipment industry and for general
working capital purposes. Following the spin-off, it is expected that
Lanier will have approximately $700 million of indebtedness, which
will be incurred in connection with the payment to Harris of an
equivalent amount in the form of a dividend and the assumption of
indebtedness.
Following the spin-off, it is expected that Lanier will pay
quarterly cash dividends, although the determination of the dividend
rate has not yet been established and will be subject to a number of
factors, including Lanier's financial condition, capital requirements,
results of operations, future business prospects and other factors
Lanier's Board of Directors may determine relevant. Additionally,
following the spin-off, it is expected that Harris will continue to
pay quarterly dividends, but at a rate expected to be substantially
below Harris's current annual dividend rate of $.96 per share. |
