SANTA CLARA (dpa-AFX) - Scientific instruments maker Agilent Technologies Inc (A) said Wednesday its board approved the separation of its electronic measurement subsidiary, Keysight Technologies Inc, and declared a special dividend distribution of all outstanding shares of Keysight's common stock to Agilent shareholders.
For every two shares of Agilent common stock held, Agilent shareholders will receive one share of Keysight common stock. No fractional shares of Keysight will be issued. Shareholders will receive cash in lieu of fractional shares. The special dividend distribution is expected to be paid on Nov. 1 to Agilent shareholders of record as of the close of business on Oct. 22.
The distribution of Keysight common stock will complete the formal separation of the electronic measurement business from Agilent. After the distribution, Keysight will be an independent, publicly traded company, and Agilent will retain no ownership interest. Agilent will focus on the life sciences, diagnostics and applied chemical markets after the company separation.
'Today's announcement marks another important milestone toward the completion of our company separation,' said Agilent CEO Bill Sullivan. 'As separate companies, Agilent and Keysight will have greater flexibility to focus on and pursue their own growth strategies and capital needs, while potentially providing shareholders with greater value over the longer term.'
Agilent expects that 'regular way' trading for Keysight's common stock will begin on the New York Stock Exchange on Nov. 3 and that 'when issued' trading for both Keysight and Agilent will begin on Oct. 20. Keysight's ticker symbol will be KEYS. Agilent will continue to trade on the NYSE under the ticker symbol A.
Last year, Agilent announced it will separate into two publicly traded companies to spur growth. One firm will focus on life sciences, diagnostics and applied markets and will retain Agilent name. The other company will comprise Agilent's electronic measurement products, and will be called Keysight Technologies.
Agilent also announced today that a quarterly dividend of 13.2 cents per share of common stock will be paid on Oct. 22, to all shareholders of record as of the close of business on Sept. 30.
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