Dallas, Texas 02/06/2014 (FINANCIALSTRENDS) – The $1.63 billion market capped diversified Real Estate Investment Trust Newcastle Investment Corp. (NYSE:NCT) announced on 5th February that its board of directors led by Wesley Robert Edens who is the Chairman of the Board had finalized on the “distribution of its equity interest” in the newly spun off firm New Media Investment Group Inc.
As per the formal announcement, Newcastle Investment Corp. (NYSE:NCT) equity interest will represent close to 25.37 million shares of common stock, which translates to 85 percent of the total number of outstanding shares that will make up the common stock of newly formed New Media Investment Group Inc. Post this distribution completion, the new company will be completely stand alone and will be traded publicly as New Media Investment Group Inc. (NYSE:NEWM). The new firm will focus its efforts on developing “local media assets and on growing its existing online advertising and digital marketing services business” the announcement stated. The formal date of distribution of share interest to the new company has been fixed as 13th February.
Share holders of Newcastle Investment Corp. (NYSE:NCT) will receive 0.07219 shares of New Media Investment Group Inc. (NYSE:NEWM) for every share of Newcastle that they own as of record date (6th February). The firm also announced that in lieu of the fractional shares, it has arranged for American Stock Transfer & Trust Company, LLC, which has been retained by Newcastle Investment Corp. (NYSE:NCT) as its distribution agent, to “aggregate all fractional shares and sell these shares in the open market at prevailing market prices and distribute the applicable portion of the aggregate net cash proceeds of these sales to each holder who otherwise would have been entitled to receive a fractional share in the spin-off”.
Newcastle Investment Corp. (NYSE:NCT) shares are trading at $5.56 per share as of 5th February.