IDT Outlines Spin Off of Straight Path Communications
In a slideshow filed with the SEC, IDT (NYSE: IDT) outlined its plan to spin out Straight Path Communications (SPCI). The company plans to distribute one share of SPCI for every two shares of IDT owned by shareholders.
IDT plans to inject the new company with $15 Million in cash upon the spin off and has tasked SPCI management with focusing exclusively on realizing the value of its intangible assets. SPCI intends to distribute not less than 50% of SPCI's consolidated positive net earnings to stockholders after achieving sustained profitability and certain minimum cash reserve levels.
The spin off is expected to be tax free to IDT shareholders and is awaiting both SEC review and NYSE listing approval.
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