Babcock & Wilcox Board Okays Spin-Off Of Power Generation Business

(RTTNews) - Babcock & Wilcox Co (BWC) on Monday said its board has formally approved the spin-off of the Power Generation business creating a new public company.

The Power Generation business will be named Babcock & Wilcox Enterprises Inc ("New B&W"), and operate as Babcock & Wilcox. It will be headquartered in Charlotte, N.C.

The remaining company will change its name to BWX Technologies Inc ("BWXT") on the date of the spin-off and will be headquartered in Lynchburg, Va.

In approving this transaction, the board believes these two companies will benefit from independent management teams, strategic autonomy, and financial flexibility to create significant long-term shareholder value.

As a result of the spin-off, company stockholders can expect to receive as a dividend one share of New B&W common stock for every two shares of the company's common stock held as on June 18, the record date. The distribution of New B&W shares is expected to occur on June 30 and is expected to be tax-free.

Beginning July 1, BWXT will trade on the New York Stock Exchange under the ticker symbol "BWXT."

New B&W will also begin trading on the New York Stock Exchange on July 1, using the ticker symbol "BW" and will continue to use the Babcock & Wilcox name.

The company's current Chief Executive Officer James Ferland, will transition to his new role of Chairman and CEO of New B&W, effective July 1.