Select Medical Holdings Corporation Announces Potential Separation Of Concentra; Potential Separation Is Intended To Be Effected In A Tax-Free Manner To Select Medical And Its Stockholders And Be Completed In Late 2024
Portfolio Pulse from Benzinga Newsdesk
Select Medical Holdings Corporation (NYSE:SEM) announced plans to separate its Concentra business into an independent, publicly traded company. The separation, expected to be tax-free for Select Medical and its stockholders, is planned for late 2024. Stockholders will retain shares of Select Medical and receive a pro rata distribution of Concentra stock. The separation is subject to conditions including market conditions, financing transactions, IRS ruling, and board approval. J.P. Morgan is the financial advisor and Dechert LLP is the legal counsel for the transaction.
January 03, 2024 | 9:18 pm
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POSITIVE IMPACT
Select Medical announced a potential tax-free separation of its Concentra business, aiming to create two independent companies by late 2024. The move is designed to enhance stockholder value and focus on strategic priorities.
The announcement of a potential spin-off typically creates positive sentiment as it can unlock shareholder value and allow more focused business strategies. However, the impact score is not at the maximum due to the conditional nature of the separation and the long lead time until completion.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 100