Up until November, 1997, when NCES was still a part of NOV, the total share count was about 63 million. During November, 1997, didn't NOV split off it's PEO business as a separate stock entity, named NCES?
If so, if you consider NOV and NCES still one company, the total shares outstanding, for essentially the same business, would be 88 million shares (NOV's 63 million plus NVES's 25 million). This would be a dilution of about 40%.
But..... NCES WAS split off as it's own stock entity. But..... NOV still owns most of NCES.
Do you happen to know the benefit to stockholders of this type of a spinoff? Could you explain to me why this spinoff would NOT be dilutive to NOV's earnings? I guess the main benefit was the $45 million taken in from the 5 million share IPO, most of which goes to NOV, right? If so, NCES's cash situation isn't going to benefit from the IPO, right?
I was thinking about NOV and/or NCES as an investment and was trying to understand the value of NOV/NCES before the spinoff and after the spinoff.
Thanks, Bob |
