Altice USA Inc (NYSE:ATUS) stock was on the rise today following the announcement of spinoff plans.
The spinoff news that has ATUS stock surging today will have Altice USA Inc separating from Altice NV. This will be done by having Altice NV spinoff its 67.2% interest in Altice USA Inc via the distribution of its shares in the company.
Following the spinoff of Altice USA Inc from Altic NV, Altice NV will reorganize to Alitce Europe. This new company will control all of the same divisions that were previously under Altice France, Altice International and the Altice Pay TV subsidiary.
Once the spinoff is complete, Altice founder Patrick Drahi will continue to control both companies. This will have him serving as the Chairman of the Board at Altice USA Inc. He will also serve as the President of the Board of Altice Europe.
Altice says that it expects the spinoff of Altice USA Inc from the rest of the company to offer several benefits for investors. This includes creating two companies that have the benefit of dedicated management teams. These companies will also be able to focus on working in their own regions under different regulations once the spinoff is complete. Additional transparency for investors will be another benefit of the spinoff.
The spinoff of Altice USA Inc will still need approval from regulators and shareholders before it can be completed. The company says that its current goal is to have the process done by the end of the second quarter of 2018.
ATUS stock was up 15% as of Tuesday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.