Varian Medical Systems announced that its Board of Directors approved the previously announced separation of the company's Imaging Components business.
The separation is intended to be executed via a tax-free distribution to Varian stockholders of common stock in Varex Imaging Corporation, a new stand-alone public company that will hold the Imaging Components business.
The distribution is expected to be completed on January 28, 2017, subject to the satisfaction or waiver of the conditions to the completion of the distribution described in the preliminary information statement filed as an exhibit to Varex's Registration Statement on Form 10 filed with the U.S. Securities and Exchange Commission.
In the distribution, Varian stockholders would receive 0.4 share of Varex common stock for every one share of Varian common stock held as of January 20, 2017, the record date for the distribution. No fractional shares of Varex will be issued.
Beginning on or about January 20, 2017 and continuing up to the distribution date, it is expected that "when issued" trading will begin for Varex shares on the Nasdaq Global Select Market ("Nasdaq") under the ticker symbol "VREXV".
Varex shares are expected to begin "regular way" trading on Monday, January 30, 2017 on Nasdaq under the ticker symbol "VREX". Varian will continue to trade on the New York Stock Exchange under the ticker symbol "VAR".
Also beginning on or about January 20, 2017 and continuing up to the distribution date, it is expected that there will be two markets in Varian common stock.
Varian shares that trade in the "regular way" market under the ticker symbol "VAR" will trade with an entitlement to shares of Varex common stock to be distributed pursuant to the distribution; shares that trade in the "ex-distribution" market under the ticker symbol "VAR WI" will trade without an entitlement to shares of Varex common stock.
Varex Imaging will be a high-volume manufacturer of X-ray tubes, flat panel detectors and high-voltage connectors as well as a supplier of imaging software and specialized accelerators for high-energy x-ray imaging.
It is expected to have annual revenues in excess of $600 million and approximately 1,400 employees around the world.