FedEx Corp’s Board of Directors has approved the previously announced separation of the FedEx Freight business.
The FedEx Board declared a pro rata dividend of 80.1% of the outstanding shares of common stock of FedEx Freight Holding Company Inc. to FedEx’s stockholders of record as of the close of business on Friday, May 15, to achieve the separation. Following the separation, FedEx Freight common stock will begin trading on the New York Stock Exchange on June 1, under the symbol “FDXF.”
FedEx stockholders will be entitled to receive one share of FedEx Freight common stock for every two shares of FedEx common stock held as of the Record Date. Stockholders will receive cash in lieu of fractional shares of FedEx Freight common stock.
FedEx will retain 19.9% of the outstanding shares of FedEx Freight common stock. FedEx will dispose of such shares within 24 months of the completion of the separation, either through one or more subsequent exchanges to repay certain FedEx debt held by FedEx creditors or through distributions to FedEx stockholders as dividends or in exchange for outstanding shares of FedEx common stock.
The distribution of FedEx Freight common stock is expected to be tax-free to holders of FedEx common stock for U.S. federal income tax purposes.