DUBLIN, Ohio — Wendy's International Inc. has confirmed its intent to spin off to current Wendy's shareholders the 160 million shares of Tim Hortons Inc. it currently owns.
According to a news release, the shares represent an 82.75 percent ownership stake in Tim Hortons.
Tim Hortons issued 17.25 percent of its shares in March 2006 in an initial public offering (IPO). The company is now targeting Oct. 1 to complete the Tim Hortons spin-off, assuming it has received from the IRS a ruling on the tax-free status of the distribution by that time.
Wendy's chairman Jim Pickett said the spin-off has the advantages of speed, simplicity and minimal execution risk.
"It will quickly deliver value to shareholders and enable the management teams of both companies to focus on their respective strategies, operations and growth agendas," he said.
