It will -
- result in the complete separation of the two companies
- be accomplished through a pro rata dividend of the outstanding shares of VPG owned by Vishay
- have a target date of July 6, 2010, if all requirements are met in time
- provide 1 share of VPG for each 14 shares of VSH held
- have a holder of record date of 5:00 pm, June 25, 2010
- start trading of VPG WI (when issued) June 23, 2010.
The company’s press release described the two components of the spinoff as follows:
“About Vishay Precision Group
Vishay Precision Group is a leading designer, manufacturer and marketer of Foil Technology Products (strain gages, ultra-precision foil resistors, and current sensors) and Weighing Modules and Control Systems (transducers/load cells, instruments, weigh modules, and control systems) for a wide variety of applications.”
“About Vishay Intertechnology
Vishay Intertechnology, Inc., a Fortune 1,000 Company listed on the NYSE (VSH), is one of the world’s largest manufacturers of discrete semiconductors (diodes, rectifiers, transistors, and optoelectronics and selected ICs) and passive electronic components (resistors, capacitors, inductors, sensors, and transducers). These components are used in virtually all types of electronic devices and equipment, in the industrial, computing, automotive, consumer, telecommunications, military, aerospace, and medical markets. Its product innovations, successful acquisition strategy, and ability to provide “one-stop shop” service have made Vishay a global industry leader. Vishay can be found on the Internet at http://www.vishay.com.”
There are still plenty of questions about whether this will be a good deal for investors or not. At this point, all I know is that it is a complete spinoff. The two parts do seem to do different things and the price/volume action after the stock spinoff will be there for everyone to see. Right now my bias is positive, but I am going to be waiting for confirmation of that belief, both fundamental and technical.
People with more knowledge of the industry and the company than I, have voiced concerns that I take seriously. I just don’t know what to do with the information other than to stay cautiously optimistic and be very alert for the issues in question affecting the deal and the companies’ performance going forward.