The board of directors of United Technologies Corp. (NYSE: UTX) approved the spinoffs of its Carrier and Otis subsidiaries into two independent companies and expects to complete the separations on April 3.
"Executing the separations of Carrier and Otis is also a major milestone to completing the merger of UTC's aerospace businesses with Raytheon to create Raytheon Technologies,” Greg Hayes, chairman and CEO of UTC, said in a statement published Wedneday.
The board also approved a pro rata dividend, effective April 3, to facilitate the spinoffs. Each UTC stockholder of record as of March 19 will get one share of common stock of Carrier and one-half share of Otis common stock for every one share of common stock of United Technologies held as of the record date of distribution.
UTC stockholders will retain their shares of common stock of United Technologies and receive cash in place of any fractional shares.
UTC said it expects “when-issued” trading for common stocks of Otis and Carrier to start on March 18 on the New York Stock Exchange and continue through the distribution date for both subsidiaries’ shares, which is anticipated on April 3.
Common stocks of Otis and Carrier will kick off “regular way” trading on NYSE under the ticker symbols “OTIS” and “CARR” respectively upon the spinoffs’ completion.
In June 2019, UTC appointed Judy Marks, president of Otis since 2017 and a three-time Wash100 winner, as CEO of the elevators manufacturing business and company veteran David Gitlin as president and CEO of refrigeration systems provider Carrier.