Jacobs Solutions Announces Special Dividend of 7,299,065 Shares of Amentum Common Stock
Rhea-AI Summary
Jacobs (NYSE: J) has announced a special dividend distribution of 7,299,065 shares of Amentum (NYSE: AMTM) common stock to its shareholders. The distribution follows the September 2024 Reverse Morris Trust transaction where Jacobs' Critical Mission Solutions and parts of Divergent Solutions merged with Amentum.
Key details:
- Record date: May 16, 2025
- Distribution date: May 30, 2025
- Ex-dividend date: May 16, 2025
The final distribution ratio will be calculated by dividing the Amentum shares by outstanding Jacobs shares on the record date. No fractional shares will be distributed; instead, they will be sold in the public market with net proceeds distributed to eligible shareholders. After this distribution, Jacobs will no longer own any Amentum shares. Shareholders will receive book-entry statements or brokerage account credits reflecting their new Amentum stock ownership.
Positive
- Distribution of 7,299,065 Amentum shares to Jacobs shareholders as special dividend
- Complete exit from Amentum ownership position, providing clean separation after RMT transaction
- Pro-rata distribution ensures fair allocation to all shareholders of record
Negative
- No 'when issued' market established, limiting shareholders' ability to trade Amentum shares before distribution
- Fractional shares will be sold in market, potentially resulting in taxable events for shareholders
- Complex transaction structure may create uncertainty for investors during transition period
News Market Reaction – J
On the day this news was published, J gained 0.40%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Record date set for May 16, 2025
RMT Transaction Background
On September 27, 2024, Jacobs' Critical Mission Solutions business and portions of its Divergent Solutions business were spun-off and immediately merged with the legacy Amentum business in a Reverse Morris Trust transaction (the spin-off and merger, together, the "RMT Transaction"). A portion of the merger consideration in connection with the consummation of the RMT Transaction was not finally determined by the effective time of the RMT Transaction. Accordingly, certain shares of Amentum common stock were placed in escrow pending the determination of whether Amentum Joint Venture LP or Jacobs was entitled to such consideration. Thereafter, following the final determination of the merger consideration amounts, 7,299,065 shares of Amentum common stock were released to Jacobs from escrow. Following the distribution of these shares to Jacobs' shareholders, all shares previously held in escrow will have been distributed, and Jacobs will not own any shares of Amentum common stock.
More Information Regarding Distribution
The distribution by Jacobs of the Amentum Share Dividend will be made to all Jacobs' shareholders as of the close of business on the record date of May 16, 2025, and will be in the form of a pro rata dividend distributable to Jacobs' shareholders. The final distribution ratio will be calculated by dividing 7,299,065 (the number of shares of Amentum common stock to be distributed) by the number of shares of Jacobs common stock outstanding on the record date.
However, no fractional shares will be distributed in the distribution. Fractional shares that Jacobs' shareholders would otherwise have been entitled to receive will be aggregated and sold in the public market by the distribution agent. The net cash proceeds of these sales (after any tax withholding, brokerage charges, commissions and conveyance and similar taxes) will be distributed pro rata (based on the fractional share such holder would otherwise be entitled to receive) to those shareholders who would otherwise have been entitled to receive fractional shares.
Jacobs' shareholders who hold Jacobs' common stock as of the record date will receive a book-entry account statement reflecting their ownership of Amentum common stock following the Amentum Share Dividend or their brokerage account will be credited with the Amentum Share Dividend.
Additional details about the Amentum Share Dividend will be described in an information statement that Jacobs intends to make available following the record date. The information statement will include details on the distribution, including, among other things, the distribution ratio of the number of Amentum shares to be distributed for each Jacobs share, how fractional shares will be treated, and the distribution's expected tax consequences for
Trading Details
Beginning on May 16, 2025 (the ex-dividend date), any acquisition of Jacobs' common stock will not include a right to receive the Amentum Share Dividend. In addition, Jacobs' shareholders who are entitled to receive the Amentum Shares Dividend will not be able to trade such shares prior to receipt as there will be no "when issued" market established in connection with the distribution.
Amentum common stock will trade in the same manner that has been in existence since Amentum common stock began trading on the NYSE. Amentum common stock currently trades on the NYSE under the symbol AMTM.
Investors are encouraged to consult with their financial advisors regarding the specific implications of buying or selling shares of Jacobs common stock on or before the record date.
About Jacobs
At Jacobs, we're challenging today to reinvent tomorrow by solving the world's most critical problems for thriving cities, resilient environments, mission-critical outcomes, operational advancement, scientific discovery and cutting-edge manufacturing, turning abstract ideas into realities that transform the world for good. With approximately
Certain statements contained in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to any historical or current fact. When used herein, words such as "expects," "anticipates," "believes," "seeks," "estimates," "plans," "intends," "future," "will," "would," "could," "can," "may," and similar words are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make concerning our expectations regarding the distribution of shares of Amentum common stock to our shareholders in the future. We base these forward-looking statements on management's current estimates and expectations, as well as currently available competitive, financial and economic data. Forward-looking statements, however, are inherently uncertain and are not guarantees of future performance. There are a variety of factors that could cause actual results to differ materially from our forward-looking statements including, but not limited to, the risks and uncertainties as to the timing of the award of projects and funding and potential changes to the amounts provided for under the Infrastructure Investment and Jobs Act and other legislation and executive orders related to governmental spending, including any directive to federal agencies to reduce federal spending or the size of the federal workforce, and changes in
Contacts:
Investors
Bert Subin
JacobsIR@jacobs.com
Media
Louise White
louise.white@jacobs.com
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SOURCE Jacobs
FAQ
When will Jacobs (J) distribute the Amentum special dividend to shareholders?
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What happens to fractional shares in the Jacobs-Amentum stock dividend?
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How will Jacobs shareholders receive their Amentum (AMTM) shares?
