On December 19, 2013, The Andersons, Inc. announced that the company’s Board of Directors approved a three-for-two stock split of its common stock. The split is structured in the form of a stock dividend to shareholders of record January 21, 2014 and payable February 18, 2014.
The company's Board of Directors made a decision to split the stock to enhance the liquidity of the company's stock and enable a larger universe of investors to purchase our shares.
They are effectively the same to the stockholders. In both cases, stockholders will own one and one-half times as many shares after the split. For example, if you owned 100 shares previously, you will receive 50 additional shares, for a new total of 150 shares.
If you purchased and held shares between the January 21, 2014 record date and the February 18, 2014 payment date, you are entitled to receive the additional split shares. If you sold your shares between these dates, you are not entitled to the split shares on the shares you sold.
- If your shares of the company’s common stock are currently held in a brokerage account, your additional shares will be sent directly to your broker and deposited to your brokerage account. Please contact your broker directly for an account statement reflecting the additional shares credited to your account as a result of the stock split, or with any questions regarding your brokerage account.
- If you are a registered holder of the company’s common stock and your shares are held directly with the company’s transfer agent, Computershare, your additional shares will be distributed through the Direct Registration System (DRS). No stock certificates will be issued. This means that your shares will be credited to an account registered in your name on the books of the company, which are maintained by Computershare. A Direct Registration (DRS) Advice statement will be mailed and is your confirmation; it will indicate the number of additional split shares you received based on your share ownership balance as of the record date. Keep it with your existing stock ownership records and other important documents. You may request stock certificates for the shares in your book-entry account at any time. Simply contact Computershare by toll-free telephone at 1-877-581-5548.
There are many advantages to having your shares in DRS. The benefits are that DRS:
- saves the burden of storing your certificate(s) in a safe place, e.g., safe deposit box or vault;
- eliminates the risk of potential loss of your certificates thus avoiding the significant costs involved in replacing any lost, stolen, or destroyed certificates;
- eliminates the risk of fraudulent transfer of cancelled certificates;
- makes your stock transactions faster and easier;
- allows for shares to be moved electronically, saving the costs associated with the issuance and delivery of physical stock certificates; and
- saves you the inconvenience of delivering stock certificate(s) to your broker for sale or safekeeping.
Existing ANDE stock certificates are still valid. Do not destroy them. You may continue to physically hold your certificates and be responsible for their safekeeping.
Unlike a cash dividend, our expectation is that the stock split itself will not result in taxable dividend income to any individual stockholder. Your tax basis in your The Andersons stock, however, is expected to change proportionately to the split, which may impact your taxes later when you sell your shares. For example, in a simplified typical case, if you owned 100 shares with a basis of $15 per share, you will now own 150 shares with a basis of $10 per share.
These examples are for illustration purposes only. We are not providing tax advice. Consult your personal tax advisor about the individual tax consequences of any transaction you undertake with your shares in the The Andersons, Inc., including, without limitation, the calculation of your tax basis as a result of this split and the tax consequences of any distribution.