IBM has announced that it has completed the separation of its managed infrastructure services business to Kyndryl. Starting on November 4, 2021, Kyndryl will begin “regular way” trading on the New York Stock Exchange under the symbol “KD.”
Each holder of IBM common stock will receive one share of Kyndryl common stock for every five shares of IBM common stock held on October 25, 2021, the record date for the distribution. For United States federal income tax purposes, the distribution has been conducted in a tax-efficient manner for IBM stockholders in the United States.
“The separation of Kyndryl is one of many actions we are taking to sharpen our focus on hybrid cloud and AI, leverage a portfolio clearly focused on technology and consulting, and achieve our growth objectives,” said Arvind Krishna, IBM chairman and chief executive officer. “We look forward to our partnership with Kyndryl as it moves forward as an independent company.”
As previously stated, IBM is retaining 19.9 percent of the shares of Kyndryl common stock, with the intention of exchanging those shares for IBM debt during the 12-month period following the distribution, subject to market considerations.