Honeywell Sets Record Date and Distribution Details for Solstice Spinoff
In August, we covered Honeywell’s (HON) ambitious three-way breakup plan. The restructuring will occur in two stages: first, the separation of Solstice Advanced Materials, followed next year by the split of Aerospace and Automation. Honeywell’s board has now approved the Solstice spinoff, and the key details are finally set.
Honeywell Spinoff Record Date and Distribution Ratio
Honeywell has established an October 17 record date for the transaction. Shareholders of record as of that date will receive Solstice shares on the October 30 distribution date.
- Distribution ratio: one share of Solstice Advanced Materials for every four shares of Honeywell.
- Tax treatment: the spinoff will be tax-free to Honeywell shareholders.
- Ticker: Solstice stock will trade on NASDAQ under the symbol SOLS.
Solstice Advanced Materials Trading Timeline
Solstice stock will begin trading on a “when-issued” basis on October 20. At the same time, Honeywell stock will also trade both “regular way” and “when-issued.”
- Honeywell regular-way shares will be entitled to receive Solstice stock on the distribution date.
- Honeywell when-issued shares will trade without the right to receive Solstice shares.
This dual-line trading period is typical in U.S. spinoffs, helping the market price the two entities separately ahead of the distribution.
Solstice Spinoff Financing and Cash Distribution to Honeywell
Solstice recently completed a $1 billion senior note offering. As we noted earlier, the proceeds will be used to fund a one-time cash distribution back to Honeywell at the time of the spinoff.
The company will also host a Solstice Investor Day on October 8 to present its strategy, growth outlook, and financial targets.
SEC Form 10-12 Filing and Solstice Leadership
The SEC has declared effective Solstice’s Form 10-12 registration statement, which provides detailed disclosures about the new company.
David Sewell, the designated President and CEO of Solstice, struck an upbeat tone:
“We look forward to beginning our journey as a standalone company on October 30,” said David Sewell. “With a leading portfolio of refrigerants, semiconductor materials, protective fibers, healthcare packaging solutions and unique nuclear power capabilities—Solstice is well positioned to deliver long-term value for our shareowners while helping our customers address some of the world’s most pressing challenges.”
Honeywell Breakup and Activist Investor Pressure
The Solstice spinoff — and the subsequent Aerospace and Automation separation — reflects the broader trend of conglomerates dismantling themselves into more focused businesses. Activist investor Elliott Management, which took a stake in Honeywell last year, has been a vocal proponent of this strategy.
Disclosure: The author has no position in any stock mentioned.
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