Edition:
India

AECOM To Spin Off Its Industry-Leading Government Services Business


Monday, 17 Jun 2019 

June 17 (Reuters) - AECOM ::ANNOUNCES INTENT TO SPIN OFF ITS INDUSTRY-LEADING GOVERNMENT SERVICES BUSINESS.TRANSACTION IS CURRENTLY EXPECTED TO BE COMPLETED IN SECOND HALF OF FISCAL 2020..FOLLOWING TRANSACTION, BOTH AECOM AND STANDALONE GOVERNMENT SERVICES BUSINESS ARE EXPECTED TO BE CAPITALIZED WITH AMPLE LIQUIDITY.SPIN-OFF OF MANAGEMENT SERVICES SEGMENT RESULTING IN NEW PUBLIC COMPANY.JOHN VOLLMER IS EXPECTED TO CONTINUE TO LEAD STANDALONE GOVERNMENT SERVICES COMPANY..RANDY WOTRING IS EXPECTED TO SERVE AS CHAIRMAN OF BOARD OF DIRECTORS OF STANDALONE GOVERNMENT SERVICES BUSINESS..AECOM ALSO REITERATED ITS FINANCIAL GUIDANCE FOR FISCAL 2019.FY2019 EARNINGS PER SHARE VIEW $2.82, REVENUE VIEW $20.67 BILLION -- REFINITIV IBES DATA.DEAL EXPECTED TO BE EFFECTED BY PRO-RATA DISTRIBUTION TO CO'S SHAREHOLDERS OF NEWLY-FORMED ENTITY HOLDING MANAGEMENT SERVICES SEGMENT.DEAL EXPECTED TO BE EFFECTED THROUGH PRO-RATA DISTRIBUTION TO AECOM SHAREHOLDERS OF COMMON STOCK OF ENTITY HOLDING MANAGEMENT SERVICES SEGMENT.SPIN-OFF WILL NOT BE SUBJECT TO A SHAREHOLDER VOTE.IN FISCAL 2018, MANAGEMENT SERVICES SEGMENT GENERATED REVENUE OF $3.7 BILLION.DISTRIBUTION IN DEAL IS INTENDED TO QUALIFY AS TAX FREE TO CO AND SHAREHOLDERS FOR U.S. FEDERAL INCOME TAX PURPOSES.FOLLOWING DEAL, BOTH CO AND STANDALONE GOVERNMENT SERVICES BUSINESS EXPECTED TO BE CAPITALIZED WITH "AMPLE" LIQUIDITY. 

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