Takeaways
- Kellogg split into two separate publicly traded companies, and shares of both fell on their first day of trading after the separation.
- Kellanova, which retained the " K" The ticker focuses on snacks and other foods, while WK Kellogg, with the ticker symbol “KLG,” houses traditional cereal brands.
- The transaction distributed all of WK Kellogg's stock to Kellanova investors, who received one KLG share for each K share they held.
Kellogg has officially split into two separate publicly traded companies, and shares of both fell Monday in their first trading session since the separation.
Kellanova (K), which retained Kellogg's former trading symbol “K” and is home to the company's global snack, cereal and international noodle products, as well as its frozen food products. ;North America, notably Pringles and Pop-Tarts. WK Kellogg (KLG) is home to traditional Kellogg cereal brands, such as Corn Flakes and Fruit Loops. It trades under the symbol “KLG”.
Kellanova noted that the separation was accomplished through the distribution of all shares of WK Kellogg to Kellanova investors at 12:01 a.m. ET on October 2. Kellanova shareholders received one share of WK Kellogg for every four shares of Kellanova they owned as of September 21.
Kellanova CEO Steve Cahillane said that with the split, Kellanova “has entered a new era with a new name and new ambition.” He said last month, when the board approved the decision, that the separation would “produce two stronger companies and create substantial value for shareholders.”
WK Kellogg explained that As a standalone company, it is “focused on winning the grain business.” Gary Pilnick, former vice president of corporate development and general counsel of Kellogg, is the CEO.
Even before the breakup, the Kellogg shares were trading near their lows for the year.
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Source: investopedia.com