Victoria’s Secret is formally going solo.
On Friday, after many months of deliberating, dad or mum firm L Brands’ board of administrators authorized the spin-off of the lingerie model, which incorporates the Victoria’s Secret Lingerie, Victoria’s Secret Beauty and Pink divisions.
The transfer places Victoria’s Secret on the New York Stock Exchange as a stand-alone agency, underneath the inventory ticker “VSCO.” In addition, L Brands Inc. will quickly grow to be Bath & Body Works Inc., with the inventory ticker going from “LB” to “BBWI.”
The modifications are anticipated to take impact Aug. 2. L Brands’ frequent inventory will start buying and selling underneath the brand new inventory ticker the next day.
L Brands plans to distribute 100% of the shares of Victoria’s Secret to eligible shareholders of L Brands’ frequent inventory after market shut on Aug. 2, with L Brands stockholders receiving one share of Victoria’s Secret frequent inventory for each three shares of L Brands frequent inventory held on the shut of enterprise on the file date of July 22.
Goldman Sachs and J.P. Morgan are serving as monetary advisers for the deal.
Victoria’s Secret has been onerous at work during the last 18 months to revive the innerwear model, which has been shedding revenues and market share for at the least three years previous to the pandemic.
After the deal to promote a majority stake of Victoria’s Secret to non-public fairness agency Sycamore Partners fell by means of amid the pandemic, L Brands mentioned it could separate the lingerie model from the extra profitable Bath & Body Works model.
“We believe Victoria’s Secret and Bath & Body Works will achieve new levels of success and unlock significant value for all stakeholders by pursuing growth strategies best suited to each company’s customer base and strategic objectives,” Andrew Meslow, chief government officer of L Brands, mentioned final month.
Shares of L Brands, which closed up 2.97 % to $73.50 apiece, are up greater than 361 %, year-over-year.