FedEx Corp. recently completed the spin-off of FedEx Freight Holding Company, establishing FedEx Freight as an independent, publicly traded company and a focused leader in the North American less-than-truckload industry.
FedEx Freight common stock began “regular way” trading on the New York Stock Exchange on June 1 under the ticker symbol “FDXF.” FedEx will continue to trade on the NYSE under the ticker symbol “FDX.”
The spin-off was achieved through FedEx’s distribution of 80.1% of the outstanding shares of FedEx Freight’s common stock on a pro rata basis to the holders of FedEx common stock. Each FedEx stockholder received one share of FedEx Freight common stock for every two shares of FedEx common stock held of record as of the close of business on May 15.
Stockholders will receive cash in lieu of fractional shares of FedEx Freight common stock.
FedEx retained 19.9% of the outstanding shares of FedEx Freight common stock. According to a release, FedEx will dispose of such shares within 24 months of the completion of the separation, either through one or more subsequent exchanges in repayment of certain FedEx debt held by FedEx creditors and/or through distributions to FedEx stockholders as dividends or in exchange for outstanding shares of FedEx common stock.
Goldman Sachs & Co. and J.P. Morgan Securities served as the financial advisors, and Skadden, Arps, Slate, Meagher & Flom served as legal counsel.
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