Globe and Mail – Fast-food chain Wendy’s International Inc. plans a fast sale of its Tim Hortons chain, with ownership of the iconic coffee shops to be handed out to Wendy’s shareholders in a special stock dividend soon after Tim Hortons’ scheduled initial public offering in March.
Wendy’s, under pressure from shareholders to serve up better results, adopted the more aggressive, tax-efficient approach to the spinoff of Tim Hortons at a board meeting last week.
Wendy’s will first sell up to 18 per cent of Tim Hortons in an IPO that is expected to put up to $600-million (U.S.) in the company’s till. Shortly after that debut, Wendy’s plans to give its shareholders new stock that represents the remaining 82-per-cent stake in Tim Hortons, according to investment bankers working with the Dublin, Ohio-based burger chain.
Many of Wendy’s major shareholders are hedge funds and are expected to quickly sell their Tim’s shares into the market.
