CBS To Split-Off 81% Of CBS Outdoor - Quick Facts

(RTTNews) - CBS Corp. (CBS-A, CBS) Wednesday said it intends to fully divest ownership of its unit CBS Outdoor Americas Inc. (CBSO), a company that leases advertising space on out-fhome advertising structures, as the final step in the separation of the unit following its initial public offering in April.

On completion of the split-off, CBS outdoor intends to transform into a real estate investment trust. CBS owns 97 million shares of CBS Outdoor common stock, which represents around 81 percent of the outstanding common stock of CBS Outdoor.

CBS shareholders will have the opportunity to exchange their shares of CBS Class B common stock for shares of CBS Outdoor common stock at a 7 percent discount, subject to an upper limit of 2.1917 shares of CBS Outdoor common stock for every share of CBS Class B common stock.

If the upper limit is not in effect, tendering shareholders would receive about $107.53 of CBS Outdoor common stock for each $100.00 of CBS Class B common stock accepted in the exchange offer.

The final exchange ratio for determining the number of CBS Outdoor shares that tendering shareholders will receive for each CBS share will be based upon the simple arithmetic average of the daily, volume-weighted, average prices of both companies's stock on the NYSE during a 3-day period, which the company expects to be from July 7 to 9.

The final exchange ratio will be announced no later than 4:30 ET on July 9, the company said in a statement.