Puck,
The only source of assurance that I am basing my analysis on is the SEC filing which states:
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OUR RELATIONSHIP WITH DAISYTEK
We are currently a subsidiary of Daisytek International Corporation, one of the world's largest wholesale distributors of non-paper consumable computer supplies and professional video and audio tape products. Our business unit was formed in 1991 to leverage Daisytek's core competencies in customer service, order management, product fulfillment and distribution. Since 1996, the operations of our business unit have been primarily focused in several Daisytek subsidiaries operating collectively as Priority Fulfillment Services, Inc. ("PFS").
After the completion of this offering, Daisytek will own approximately 82.2% of the outstanding shares of our common stock, or approximately 80.1% if the underwriters exercise their over-allotment option in full. Daisytek has announced that it plans to effect the complete separation of PFSweb from Daisytek sometime in mid-2000 (and within one year of the closing of this offering) through a pro rata distribution to its common stockholders of all of the shares of our common stock which Daisytek then holds (which is also known as a "spin-off"). There are, however, various conditions to the completion of the spin-off, and we cannot assure you as to whether or when it will occur...
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When they say "all of the shares," I interpret it to mean that we'll get all of that 80.1% interest in PFSW.
I'm glad you're trying to examine this from different angles. It's the mark of a prudent investor. I'm open to other observations on the spinoff if others care to comment on it.
Regards,
Rainier
Disclosure: Long DZTK
PS. Check your favorite EDGAR site for further details, which outlines certain hurdles the company must clear in order to complete the spinoff, such as IRS approval and other legal clearances.
PPS. Please note that I urge you to do your own research and to make your own investment decisions, and that I am not making a recommendation to act upon these securities. |
