shares will be distributed on February 3 to Ralcorp shareholders of record as of January 30. Investors will receive 1 Post share for every 2 shares of Ralcorp they own. Approximately 34.5 million Post shares will be outstanding following the distribution. Post shares are expected to begin trading on a when-issued basis on January 26. The spinoff reverses Ralcorp’s acquisition of Post just four years ago. As part of the transaction, Ralcorp has leveraged Post significantly, leaving the company under a significant debt load which will either sink it or create an opportunity for big gains in deleveraging, but in either event, may hinder its ability to promote its strong branded offerings.
Disclosure: Author holds no position in any stock mentioned
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