Tyco International Ltd. announced its plans to spin off its subsidiary The ADT Corporation into its own independent company leading ADT to file the Form 10 Registration Statement with the Securities and Exchange Commission (SEC) allowing ADT to register its own securities on behalf of itself. Once separated from Tyco, ADT will operate and compete in the North American residential and small business security market where it already has a strong customer base.
The Form 10 Registration Statement that ADT is filing allows it to issue its own securities and thereby become its own company separate from Tyco International Ltd. The distribution of equity will take place through a tax-free dividend distribution to the Tyco International shareholders.
“The filing of the Form 10 Registration Statement by ADT is an important milestone in our ongoing separation process,” Tyco Chairman and CEO Ed Breen wrote in the press release. “We intend to file the Form 10 for our flow control business, along with a proxy statement seeking shareholder approval of the dividend distributions by the end of April. We remain on track to complete both spinoffs by the end of September.”
The transaction’s success is dependent on several conditions such as effectiveness and accuracy of the Form 10 Registration with the SEC, tax rulings, the approval of Tyco shareholders of the spinoff as well as well as the approval of Pentair shareholders.
ADT originally merged with Tyco International Ltd. in 1997 and attempted a previous spinoff of ADT in 2002 which was abandoned due to a credit downgrade.