Patriot Transportation Holding Inc. said it is creating New Patriot, a separate publicly traded carrier, as part of a plan to split the business into transport and real estate units.
Patriot, based in Jacksonville, Florida, made the filing as a follow-up to the May announcement that its board had decided to create two separate businesses by distributing shares in New Patriot to its current holders. The spinoff is expected to be done by early 2015.
Over the first nine months of its fiscal year through June 30, trucking has accounted for 80% of revenue totaling $120 million, but just 33% of profits. The rest have come primarily from real estate with a smaller share from mining.
There hasn’t been trading of New Patriot shares since the Securities & Exchange Commission hasn’t yet authorized their issuance.
The company’s statement in May said the move was intended to increase access to capital for both units and give investors a greater opportunity to evaluate each unit’s prospects from a financial standpoint.
Patriot also said that John Anderson, Edward Baker, Thompson Baker II, Luke Fichthorn III and Robert Paul II will compose the initial board of New Patriot. All of them except Fichthorn will resign from director’s posts once the spinoff is done.