Hertz (HTZ) to separate into 2 publicly traded companies on July 1, 2016

Hertz Global Holdings (HTZ) said its plan to separate its car-rental and equipment-rental businesses into two public companies was formally approved by its board of directors.

   

• HTZ: The rental-car business, currently named Hertz Rental Car Holding Co., will be named Hertz Global Holdings Inc. (HTZ), 
• HRI: while the equipment-rental business will be called Herc Holdings Inc. (HRI)

The separation will be completed through a dividend distribution, in which shareholders of record on June 22 will receive one share of Hertz Rental Car Holding for each five shares they currently own. Each current share of Hertz will represent one share of Herc Holdings, but those shares will be adjusted for a 1-for-15 reverse stock split. The new Hertz Global Holdings will begin trading on July 1, 2016, under the current symbol of "HTZ" on the NYSE, while Herc Holdings will trade on the NYSE with the symbol "HRI." Hertz's stock has tumbled 29% in 2016 through Friday, while shares of rival Avis Budget Group Inc. (CAR) have slumped 16% and the S&P 500 (SPX) has gained 2.7%.