VF Corporation has announced its board of directors has permitted the previously announced separation of its Jeanswear organisation into an independent, publicly traded company.
Named Kontoor Brands, the new company will include the Wrangler, Lee and Rock & Republic brands, and the VF Outlet business. VF said that the separation will take place through the distribution of all shares of Kontoor Brands to its common stockholders.
The distribution of shares is expected to be completed after the market closes on 22 May this year and VF shareholders will receive one share of Kontoor Brands common stock, for every seven shares of VF common stock.
Following the distribution of common stock, Kontoor Brands will serve as an independent, publicly traded company.
VF Corporation said: “The completion of the distribution is subject to a number of customary conditions, including the Securities and Exchange Commission (SEC) having declared effective Kontoor Brands’ Registration Statement on Form 10, as amended, which Kontoor Brands has filed with the SEC and is available at the SEC’s website.
“VF expects to receive an opinion from its tax advisors confirming the tax-free status of the spin-off to VF and its stockholders (except to the extent of cash received in lieu of fractional shares).”