Aaron’s Holding Company will spin off the company’s Aaron’s Business segment to company shareholders this week. The separation will be completed through a pro rata dividend of The Aaron’s Company common stock to shareholders on record by November 27, 2020. The company’s board of directors has established November 30 as the anticipated closing date.
Following the spinoff, both companies will be renamed: Aaron’s Holdings Company will become Prog Holdings Inc., and will begin trading on the New York Stock Exchange under the new symbol “PRG” on December 1; the spun-off company will become The Aaron’s Company Inc., and will begin trading on the New York Stock Exchange under the symbol “AAN,” also on December 1.
Each shareholder of record will receive one share of common stock of The Aaron’s Company for every two shares they hold of the current company common stock on November 27. Shareholders will receive cash for any fractional shares. The spinoff has been structured to qualify as a tax-free distribution to the company and its shareholders for U.S. federal income tax purposes, except for cash received for fractional shares. The company has advised shareholders to consult with their tax advisors regarding potential tax consequences of the spinoff.
No action is needed for shareholders to receive The Aaron’s Company common stock in the distribution. Shareholders who opt to sell their shares on or before November 27 will not receive The Aaron’s Company common stock in the distribution.