Comverse, Inc. Spin-Off And Share Distribution Expected On October 31, 2012
WAKEFIELD, Mass., Oct. 12, 2012 (GLOBE NEWSWIRE) -- Comverse, Inc. ("CNS"), a subsidiary of Comverse Technology, Inc. ("CTI"), (Nasdaq:CMVT) announced today that its Form 10 registration statement for its planned spin-off has been declared effective by the Securities and Exchange Commission ("SEC"). CNS expects to become an independent public company following the spin-off and share distribution.
The effectiveness of the Form 10 was one of the few remaining conditions to the planned spin-off. On October 10, 2012, CTI received shareholder approval for the spin-off in which 100% of the outstanding shares of CNS common stock will be distributed to CTI shareholders. CTI's board of directors declared the spin-off dividend on October 10, 2012 after receipt of shareholder approval.
The distribution of shares of CNS common stock is scheduled to occur after the close of trading on October 31, 2012, the distribution date for the spin-off, to CTI's shareholders of record as of 5 p.m. EDT on October 22, 2012, the record date for the spin-off. CTI will distribute one share of CNS common stock for every ten CTI common shares outstanding as of the record date. Shareholders of record will receive cash in lieu of fractional shares of CNS common stock, which will be aggregated and sold on their behalf.There is no current market for CNS common stock. The NASDAQ Stock Market has authorized the listing of CNS common stock under the symbol "CNSI" following the spin-off. CNS has been advised that trading in its common stock is expected to begin on a "when issued" basis on October 18, 2012 under the symbol "CNSIV." On the October 31, 2012 distribution date for the spin-off, "when issued" trading is scheduled to end and "regular-way" trading is scheduled to begin for CNS common stock on November 1, 2012 under the ticker symbol "CNSI."
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