KAR Gets OK from IRS for IAA Spin Off Featured

By Staff Writer April 09, 2019 648

KAR Auction Services Inc. has received a favorable private letter ruling from the Internal Revenue Service with respect to the tax-free status of its previously announced spin-off of its Insurance Auto Auctions salvage auction business.

KAR announced the spin off in 14 months ago and expected to complete it by the first quarter of this year. That deadline has passed.

KAR stockholders will retain shares of the remaining KAR Auction Services, Inc. and will receive new shares of Insurance Auto Auctions.

The separation remains subject to a number of conditions, including the effectiveness of IAA's Registration Statement on Form 10K that was filed with the U.S. Securities and Exchange Commission, as amended, the execution of ancillary agreements related to the spin-off and final approval of KAR's board of directors.

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Last modified on Tuesday, 09 April 2019 13:18