Tyco International said its board has formally approved its separation into three publicly traded companies through a dividend distribution to shareholders.
The distributions will be made on June 29 and Tyco International shareholders will receive one share of and one share of Tyco Electronics for each of their shares, the company said. The board also approved a one-for-four reverse split that will become effective once the dividend distribution is done.
Tyco has said the separation, costing up to $1.6 billion, will let each company better focus on building value by setting its own strategy for acquisitions, alliances and use of resources, while giving investors clearer choices.
The company, which announced the tax-free break-up in January 2006, had expected to complete it early in the second quarter, but pushed back the date as it awaited the go-ahead from U.S. regulators.
Former chief Dennis , who in 2005 began serving a prison sentence for looting Tyco, proposed a break-up in 2002. Those plans were put on ice as Tyco worked to repair its image, which had come to be defined by a notorious $6,000 shower curtain and a $15,000 umbrella stand bought for with company funds.
Tyco CEO Ed Brine will continue to lead the company, whose portfolio will include the fire and security and engineered products segments, including the DAT home alarm business. Rich Meal will head Tyco Healthcare, which is being renamed , while Tom Lynch will be CEO of Tyco Electronics.
"We are now in the final stages of completing this complex transaction which will provide these businesses with the focus and flexibility to achieve their long-term growth potential," Brine said in a statement.
Tyco also filed with the U.S. Securities and Exchange Commission on Thursday to withdraw the debt offerings that the three entities registered for in connection with the separation.
Tyco spokesman Paul said there was no need for the debt issues as the company has "debt financing in place to allow us to complete the spin-offs of and Electronics.
"We're moving forward on that basis to complete the separation as planned," said.
After the break-up, Tyco International has said it will explore the possible sale of its infrastructure services business, whose 2006 sales totaled $1.2 billion.
Tyco Electronics, whose 2006 sales totaled $12.8 billion, makes passive electronic components used in cars, telecommunications and computers. It is based in Berwyn, Pennsylvania. Tyco Electronics said in a May regulatory filing it might look to sell its power systems segment, which serves the communications industry and had 2006 sales of about $500 million.
, with 2006 sales of $9.6 billion, makes sutures, needles and imaging products, and is the world's biggest maker of acetaminophen. will be based in Mansfield, Massachusetts.
Tyco Electronics has applied to trade under the symbol "TEL" on the New York and Bermuda exchanges, while will trade as "CO." Tyco International will remain "TEC."