By Chris Wack
Fidelity National Financial Inc. said Wednesday it plans to spin off to its shareholders 15% of the common stock of its wholly owned F&G Annuities & Life Inc. subsidiary through a dividend.
The company said it will retain control of F&G through an 85% ownership stake and remains committed to F&G's growth and long-term success.
The distribution was approved by Fidelity National Financial's board of directors Monday. The separation is intended to be structured as a taxable dividend to Fidelity National Financial shareholders and is targeted to be completed in the third quarter of 2022, the company said.
Fidelity National Financial will convert its $400 million intercompany loan to F&G into F&G equity prior to the distribution. Chris Blunt, president and chief executive of F&G, will remain in his role. No change is expected to Fidelity National Financial or F&G's strategy, operations or management teams, the company said.
F&G shares will be publicly listed and trade on the New York Stock Exchange, Fidelity National Financial said.
Fidelity National Financial shares were up 4% to $49.86 in premarket trading.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
03-16-22 0701ET