The Phoenix Companies, Inc. (NYSE:PNX) today announced a 1-for-20 reverse stock split of Phoenix common stock.
“We believe this is the right time for a reverse stock split, which will reduce administrative costs and improve our ability to interact with our shareholders. We also believe the resulting increase in share price will improve the perception of our common stock, which goes hand-in-hand with the substantial progress we have made in our business fundamentals and operating performance,” said James D. Wehr, president and chief executive officer.
Phoenix anticipates the reverse stock split will be effective after the close of all trading on August 10, 2012, and Phoenix common stock will begin trading on a split adjusted basis on the New York Stock Exchange (NYSE) at the opening of trading on August 13, 2012.
When the reverse stock split becomes effective, every 20 shares of issued and outstanding Phoenix common stock will be automatically combined into one issued and outstanding share of common stock. This will reduce the number of outstanding shares of Phoenix common stock from 116.3 million to 5.8 million. Phoenix common stock will continue trading on the NYSE under the trading symbol “PNX” but will trade under a new CUSIP number.
No fractional shares will be issued in connection with the reverse stock split. In connection with the reverse stock split, Phoenix will purchase all fractional shares that otherwise would have been issued as a result of the transaction. Shareholders who would otherwise hold a fractional share of Phoenix common stock will receive a cash payment in lieu of the fractional share.
Additional information on the treatment of fractional shares and other effects of the reverse split can be found in Phoenix’s definitive proxy statement filed with the Securities and Exchange Commission on April 3, 2012. Shareholders granted the Board of Directors discretionary authority to effect this reverse stock split at the company’s Annual Meeting of Shareholders on May 15, 2012.