Monday, June 16, 2014CANTON, Ohio -- Common shares of The Timken Co.'s new spinoff, TimkenSteel, will be distributed June 30 near the end of the business day, officials say. Following the distribution, TimkenSteel will be an independent, publicly traded company.
The company has received approval to list its common shares on the New York Stock Exchange under the symbol TMST.
Timken shareholders will receive one common share of TimkenSteel for every two common shares of Timken held at the close of business on the record date of June 23. Timken shareholders entitled to receive the June 30 distribution will receive a book-entry account statement or a credit to their brokerage accounts that reflects their new ownership of TimkenSteel common shares.
After the spinoff, Timken will continue to focus on its core bearings business as well as related power transmission products and services. "With this strategic value-building initiative soon behind us, we will continue to manage the business for profitable growth while maintaining our focus on delivering products and services that keep the world's industries working reliably and efficiently," said Richard G. Kyle, Timken president and CEO. " We're certainly encouraged by our progress and confident in our future prospects."
According to an opinion from Timken's special tax counsel Covington & Burling LLP, neither Timken nor its shareholders will be subject to federal income tax as a result of the distribution of TimkenSteel common shares in the spinoff (except to the extent cash is received in lieu of fractional shares).
TimkenSteel Corp., which creates tailored steel products and services for demanding applications, posted sales of $1.4 billion in 2013 based on steel segment sales as part of The Timken Co. The Timken Co. posted $3 billion in sales in 2013 and has 17,000 employees in 28 countries.
SOURCE: TimkenSteel Corp.
Published by The Business Journal, Youngstown, Ohio.
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