Travelers Property Casualty Corp. announced that Citigroup has completed the spin-off of Travelers Property Casualty by distributing 219,050,000 shares of Travelers class A common stock and 450,050,000 shares of Travelers class B common stock, owned by Citigroup.
As a result of the distribution, Citigroup currently holds approximately 49.95 million shares of Travelers class A common stock and approximately 49.95 million shares of Travelers class B common stock, representing 9.99 percent of the outstanding shares of Travelers common stock and 9.99 percent of the outstanding voting power of Travelers.
No fractional shares of Travelers class A common stock or Travelers class B common stock will be delivered as part of the distribution. Instead, fractional shares will be aggregated and sold on behalf of all stockholders. The net sale proceeds will then be distributed on a pro-rata basis to the affected stockholders.
As previously announced, Citigroup has received a private letter ruling from the Internal Revenue Service to the effect that the distribution of Travelers class A common stock and class B common stock will be tax free to Citigroup and its stockholders for U.S. federal income-tax purposes. Cash received in lieu of fractional shares will be taxable.
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