On June 4, 2018, DDR Corp. (NYSE: DDR; $15.90; Market Capitalization: $2.9 billion) announced that its board of directors approved the spin-off of certain continental U.S. and Puerto Rican real estate assets into a separate company, Retail Value Inc. The separation will occur on July 1, 2018 through distribution of 100% of RVI’s outstanding shares to shareholders of DDR and is expected to be taxable to shareholders of DDR.
• Record date for the spin-off will be June 26, 2018.
• Distribution date for the spin-off will be July 1, 2018.
• DDR shareholders will receive one share of RVI common stock for every
10 shares of DDR common stock held as of the record date.
• The shares of the two companies will be listed on the New York Stock
Exchange. DDR will trade under the symbol DDR, and Retail Value Inc. will
trade under the symbol RVI.
• Shares of DDR and RVI are expected to begin trading in the ‘when-issued’
market on or about June 25, 2018, under the symbols “DDR WI” and “RVI
• Common shares of both companies are expected to commence regular-way
trading on July 2, 2018.
• The distribution is taxable for U.S. shareholders. An amount equal to the fair market value of the RVI’s common shares received, which will be determined based on the volume weighted average price (VWAP) per share of the Company’s common shares on the first trading day following the distribution date will be treated as a taxable dividend.
RVI filed Form 10-12B with the SEC on June 4, 2018 in connection with the spin-off. RVI’s initial portfolio will…