It’s official… HP sets split date
- 02 October, 2015 05:50
Meg Whitman - CEO, HP
HP has officially confirmed plans to split the organisation into two independent companies, Hewlett Packard Enterprise Company and HP Inc with the separation expected to be completed on November 1.
Approved by the tech giant’s Board of Directors, Hewlett Packard Enterprise will provide technology solutions designed to help businesses optimise traditional IT while also assisting in cloud and mobile transitions.
Specifically, this company will include HP's portfolio across its Enterprise Group, Enterprise Services, Software and Financial Services businesses.
On the other hand, HP Inc. will own and operate HP's printing and personal systems businesses, across areas such as multi-function printing, Ink in the Office, graphics, commercial mobility, and services.
“This separation will enable us to accelerate the turnaround we began four years ago,” says Meg Whitman, Chairman, President and Chief Executive Officer, HP.
“As two independent, industry-leading companies, Hewlett Packard Enterprise and HP Inc. can drive more focused business strategies, innovation roadmaps, and go-to-market models.
“The separation will also present better choices for investors by creating two distinct and attractive investment profiles.”
In New Zealand, HP Managing Director Keith Watson will take charge of Hewlett Packard Enterprise, with former Vodafone and Plan B tech stalwart Grant Hopkins heading up HP Inc.
Globally speaking, Whitman says the separation will occur by means of a pro rata distribution to HP stockholders of 100 percent of the outstanding shares of Hewlett Packard Enterprise.
The distribution is expected to occur on November 1 and n connection with the separation, HP will be renamed HP Inc.
Consequently, the separation will provide HP stockholders with ownership interests in both HP Inc. and Hewlett Packard Enterprise.
Whitman says each HP stockholder will receive one share of Hewlett Packard Enterprise common stock for every one share of HP common stock held as of October 21, 2015, the record date for the distribution.
In addition, no fractional shares of Hewlett Packard Enterprise will be issued with stockholders set to receive cash in lieu of fractional shares.
Beginning on or about October 19, 2015 and continuing up to the distribution date, it is expected that "when issued" trading will begin for Hewlett Packard Enterprise shares on the New York Stock Exchange ("NYSE") under the ticker symbol "HPE WI".
Hewlett Packard Enterprise shares are expected to begin "regular way" trading on Monday, November 2, 2015 on the NYSE under the ticker symbol "HPE" while HP - to be renamed HP Inc. - will continue to trade on the NYSE under the ticker symbol "HPQ".