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Worthington Board OKs Separation of Steel Processing Business

November 9, 2023

Worthington Industries said on Thursday its board of directors has approved the previously announced separation of its Steel Processing business, Worthington Steel Inc.

This will be done via a spin-off generally intended to be tax-free to shareholders for US federal income tax purposes, the Columbus, Ohio-based company said.

“The board declared a pro rata distribution of 100% of the outstanding common shares of Worthington Steel to Worthington Industries shareholders of record as of the close of business on Nov. 21, 2023,” the company said in a statement.

The distribution is expected to be payable prior to market open on Dec. 1.

As a result of the distribution, Worthington Industries shareholders will get one common share of Worthington Steel for every one common share of Worthington Industries they hold on Nov. 21.

Worthington noted that no action is required by Worthington Industries shareholders to get the distributed common shares of Worthington Steel.

Shares Soon to Trade on NYSE

The company said it expects “when-issued” trading of Worthington Steel common shares to begin on Nov. 28 on the New York Stock Exchange (NYSE) under the symbol “WS WI.”

The “when-issued” trading market is a market for the yet-to-be-issued Worthington Steel common shares to be handed out to holders of Worthington Industries on Dec. 1, the company said.

“Regular-way” trading of Worthington Steel common shares is expected to begin on the NYSE on Dec. 1, under the symbol “WS,” Worthington added.

Also on Dec. 1, Worthington Industries will also be renamed “Worthington Enterprises Inc.” and will continue to trade on the NYSE under the ticker symbol “WOR.”

Background

Recall that Worthington announced it would be splitting off its steel business and creating two separate, publicly traded businesses in late-September 2022.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.