By: E&P Staff The E.W. Scripps Co. took another formal step towards spinning its newspaper business into a separate company, announcing Friday that its board of directors had approved the plan.
Scripps last fall announced it was looking to split the company into two publicly traded companies, one focusing on "local media" with its newspapers, syndication businesses and broadcast stations, and the other on "national and global lifestyle media and interactive services" that will include its cable networks and online properties.
The separation is expected to take place July 1.
Scripps shareholders will get a tax-free distribution of stock in the new company called Scripps Networks Interactive Inc. They will continue to own shares in E.W. Scripps, which will operate the newspapers.
Friday's board action ensures the spin-off because the Scripps family owns the controlling class of stock, which is not publicly traded. That stock will be voted at the annual shareholder's meeting June 13. Ohio law does not require a vote on the transaction by holders of the company's publicly traded Class A common shares, Scripps said.
Also Friday, the board approved a three-for-one reverse stock split that will take effect on July 16.
Scripps said the reverse stock split applies only to shares in the E. W. Scripps Company, which will continue to be traded on the New York Stock Exchange under the symbol SSP.
The proposed reverse stock split requires approval of both Class A and the Scripps controlling shares, and will be voted at a special shareholders meeting on July 15.
Scripps shareholders will receive one share of SSP for each three that they own.
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