ATLANTA – Aaron’s Holdings Company will be renamed Prog Holdings Incl. as part of a spin-off of the company’s Aaron’s Business segment to company shareholders.
The company’s board of directors has established Nov. 30 as the anticipated closing date. Following the spin-off, Prog Holdings Inc. will begin trading on the New York Stock Exchange under the new symbol “PRG” on Dec. 1.
The spun-off company that includes the Aaron’s Business segment will be renamed The Aaron’s Company Inc. and will begin trading on the New York Stock Exchange under the symbol “AAN,” also on Dec. 1.
The company said this week that the separation will be completed through a pro rata dividend of The Aaron’s Company common stock to shareholders of record on Nov. 27.
Each shareholder of record by this date will receive one share of common stock of The Aaron’s Company for every two shares of the company common stock held by such shareholders on this same date. The company said shareholders will receive cash in lieu of any fractional shares they would otherwise receive in the distribution.
The company said the distribution does not require shareholder approval and that no shareholder action is necessary to receive shares in the distribution of common stock of The Aaron’s Company.
The company added that the spin-off has been structured to qualify as a tax-free distribution to company shareholders and the company for U.S. federal income tax purposes, except with respect to cash received in lieu of fractional shares. Shareholders have been advised to consult with individual tax advisors regarding U.S. federal, state, local and foreign tax consequences of the spin-off.
The company also noted that any shareholders who sell their shares on or before Nov. 27 will also be selling their right to receive The Aaron’s Company common stock in the distribution.