Office Depot has completed a previously announced feasibility review, and its board of directors approved proceeding with the implementation of a holding company reorganization.
When implemented, Office Depot will become a wholly owned subsidiary of a new holding company, The ODP Corporation, which will replace Office Depot as the public company trading on Nasdaq under Office Depot’s current ticker symbol “ODP.” Existing shares of Office Depot will be automatically converted into shares of common stock of The ODP Corporation.
The holding company reorganization is intended to simplify the company’s legal entity and tax structure, more closely align the company’s operating assets to their respective operating channels within the legal entity structure, and increase its operational flexibility.
As disclosed in the company’s definitive proxy statement filed with the Securities and Exchange Commission on March 26, if approved by the company’s shareholders, the board may decide to implement a reverse stock split substantially concurrently with the consummation of the holding company reorganization. Neither the holding company reorganization nor the reverse stock split is expected to result in a change in the directors, executive officers, management or business of Office Depot, the company said.
Subject to obtaining required approvals or any other intervening developments, the holding company reorganization is expected to be completed on or about the end of the second quarter of 2020.