Alexander & Baldwin's CEO Hosts Analyst Day - Conference Call Transcript

Then turning to slide seven, having build up that business, we have decided now separation, it’s, whenever I meet with investors they ask us, well, why do you have, real estate and ag business together with shipping company and it’s, I’d just explain to you why we have that.

But, it’s a good question, especially as the company has grown over the years and some of the synergies that previously existed between the two businesses no longer exit. So it’s a question we’ve look at ourselves every couple years last 10 years, there was also recent evaluation, which we started in very early 2011.

We eventually reached the conclusion that indeed the time is right to separate the two companies, there a lot of benefits here which we’ve listed on the left hand side of the slide.

But essentially we’ve grown two companies large enough and strong enough, and different enough certainly to stand on their own, and be successful as independent public company. So on December 1 our Board approved that decision we announced that on that date.

Quick update on where we are on separation. We are on track for third quarter closing. We have submitted all the necessary documents with the SEC and IRS, and we expect receive those approvals in due course.

This will be structured as a tax free spin-off. It’s actually the real estate and ag business that will be spin-off, and we will keep however the name Alexander & Baldwin, Matson will operate under its name Matson Navigation Company.

We just got approval just the other day of our S-4 proxy. So that is now official and has been mailed out to our shareholders, Annual Meeting will be on May 11th. One of the items that will be vote upon on shareholders is the structure of the separation, not the separation itself that doesn’t require shareholder approval.

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