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SPINOFF: Central Garden & Pet Company [CENT] and Central Garden Class A [CENTA]
Issue:
On 2/5/2007 Central Garden & Pet Company [CENT] distributed 2 shares of Central Garden Class A [CENTA] for each share of CENT owned.
Cause:
This is not quite the same as an ordinary spinoff, because we are ending up with two classes of stock in the same company, rather than shares of two different companies. However, for our purposes, the transaction will be treated as an ordinary spinoff.
Resolution:
Enter the spinoff transaction in accordance with the instructions at
http://www.iclub.com/support/kb/default.asp?page=normal_spinoff.
Here's the information you need for the spinoff:
1. Spinoff date - 02/05/2007
2. Parent company - Central Garden & Pet Company [CENT]
3. Remaining basis percentage of Parent Company, [CENT] - 33.48.
4. Number of shares held in parent company - provided by software.
5. There is one daughter company - Central Garden Class A [CENTA]
6. Number of shares of CENTA received - This will be the number of shares owned in CENT multiplied by 2 (make sure to include fractional shares).
7. Price per share of daughter company - $14.50.
8. Cash received in lieu of fractional shares - take from broker statement.
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