- #Xpo logistics goodwill writedown registration
- #Xpo logistics goodwill writedown software
- #Xpo logistics goodwill writedown free
Each company will deepen its differentiation as a customer-centric innovator by focusing technology resources on enhancing proprietary software developed for its specific services and end markets. It will also increase the attractiveness of its equity compensation programs, with relatively lesser dilution to existing stockholders in the long term. The spin-off will allow each company to use its stock in achieving its strategic objectives like acquisitions.
#Xpo logistics goodwill writedown free
Both companies are expected to generate a high return on invested capital, robust free cash fl ow, and have greater flexibility in allocating capital.
Each company will benefit from an undiluted focus on strategic priorities, customer requirements, stakeholder interests, management team and culture, and greater flexibility to tailor strategic decision-making. Post-separation, both companies will have a robust balance sheet with low net debt leverage and strong financial characteristics on day one of the spinoff and pursue an investment-grade credit rating. XPO’s views regarding the spin-off’s potential impact on aggregate equity value are based, among other things, on a study of the valuation multiples assigned to its publicly traded peers that have specialized business models. Post spin, the aggregate trading price of the stocks of the two standalone companies is expected to be higher than the price that XPO’s stock would trade at if the two businesses remained combined. The company also plans to divest European business and North American intermodal operations, which would help to simplify the company’s transportation (LTL) service offering. The standalone companies would have a singular focus on enhancing the growth and profitability of their national network for the benefit of their stakeholders. However, other investors want to invest in an asset-light business like the tech-enabled truck brokerage platform that the spin-off allows. Many investors wish to invest in a pure-play like Less than truckload (LTL) business that is asset-based with a high return on capital. Each company will have an investor base aligned with a clear-cut value proposition and be valued separately by the investment community, benefiting each company in executing its growth strategy. XPO believes that the separation of its North American LTL business from its asset-light transportation brokerage services will unlock significant equity value in both standalone companies for the benefit of all stakeholders beyond what is currently reflected in the existing conglomerate. After nearly six months after the separation, XPO has further decided to spin off its brokered transportation services business. Post Spin-off, XPO comprised its Transportation business, including the North American Less-Than-Truckload (LTL) business and Brokerage services.
On August 3, 2021, XPO completed its GXO Logistics (Logistics business) spin-off. LLC as its financial advisors and Paul, Weiss, Rifkind, Wharton & Garrison LLP, and Wachtell, Lipton, Rosen & Katz as its legal advisors to assist with the planned spinoff. XPO Logistics has retained BofA Securities, Goldman Sachs & Co.
#Xpo logistics goodwill writedown registration
The company expects to complete the planned spin-off in 4Q22, subject to various conditions, including the effectiveness of a Form 10 registration statement, receipt of a tax opinion from counsel, the refinancing of XPO’s debt on terms satisfactory to the XPO board of directors, and final approval by the XPO board of directors, among other requirements. The pricing of the new shares and the number of shares XPO shareholders would receive are yet to be decided. The company’s announcement comes in after the spin-off of GXO Logistics (Logistics business), which was completed on August 3, 2021. In North America, the company is currently under an exclusivity agreement with a potential sale of its intermodal business, which provides rail brokerage and drayage services. Along with the spin-off of its brokered transportation services business, XPO also plans to divest its European business through either a sale or a listing on a European stock exchange. The planned spin-off transaction is intended to be tax-free to XPO shareholders and would create two focused, publicly traded companies that are industry leaders in their own right. On March 8, 2022, XPO Logistics Inc (NYSE: XPO, $72.39, Market Capitalization:$8.3 billion), a leading provider of freight transportation services, primarily truck brokerage and less-than-truckload (LTL) services, announced that its board of directors has approved a plan to spin-off its brokered transportation services (truck brokerage) business, transforming the remaining company into a pure-play less than- truckload company.
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