L Brands has announced that it has approved the previously announced separation of Victoria’s Secret into an independent, publicly traded company.
Trading as Victoria’s Secret and Co, the group will include Victoria’s Secret Lingerie, PINK, and Victoria’s Secret Beauty.
Set to become effective on 2 August 2021, L Brands shareholders will receive one common stock for every three shares of L Brands common stock held as of 22 July 2021.
While fractional shares in the group will not be distributed, any fractional share of common stock issuable to an L Brands stockholder will be sold in the open market, with the stockholder receiving a cash payment based on the fractional share’s pro rata portion of the net cash proceeds from total fractional shares sales.
In addition, the group revealed that it has approved a name change from L Brands to Bath and Body Works.
Expected to take place on 2 August in conjunction with the separation, the company will trade on the New York Stock Exchange as BBWI from 3 August 2021.
Goldman Sachs and Co and JP Morgan Securities served as financial advisors, with Davis Polk and Wardwell acting as legal counsel.