well,here it is. 1 for 10.
Thursday August 14 4:31 PM EDT
Company Press Release
Source: PepsiCo, Inc.
PepsiCo Approves Spinoff Plan With One-Time $4.5 Billion Distribution; Quarterly Dividend Also Declared
PURCHASE, N.Y., Aug. 14 /PRNewswire/ -- PepsiCo, Inc. (NYSE:PEP), announced today that its Board of Directors approved a formal plan to spin off to shareholders the corporation's restaurant business.
The Board's action authorizes PepsiCo to proceed with plans disclosed in January to spin off the restaurant business.
PepsiCo's restaurant business, with about $10 billion in annual revenues, includes the global Pizza Hut, KFC and Taco Bell brands. Its packaged goods business consists of Pepsi-Cola Company and Frito-Lay Company, which generate some $20 billion in annual revenues.
Under terms of the plan, the separation of the packaged goods and restaurant businesses will occur at the end of the day on October 6, 1997. Shareholders of record on September 19, 1997 will receive one share in the new restaurant company, TRICON Global Restaurants, Inc., for every 10 shares of stock they hold in PepsiCo, Inc.
The plan approved by the Board calls for TRICON to enter into separate financing arrangements and to pay PepsiCo a one-time distribution of $4.5 billion at the time of the spin off. PepsiCo intends to use the money to pay down debt and repurchase shares.
Completion of the spin off is subject to clearance by the Securities and Exchange Commission. PepsiCo also said it recently received a ruling from the Internal Revenue Service that the spin off will be tax-free to PepsiCo and its shareholders. An Information Statement providing details of the spin off will be mailed to PepsiCo shareholders in early September.
In addition, PepsiCo's Board declared a regular quarterly dividend of 12.5 cents, payable October 7, 1997 to shareholders of record on September 19, 1997.
SOURCE: PepsiCo, Inc.
More news for referenced ticker symbols: PEP, and related industries: food/beverages.
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