Vector Group Ltd. intended to spin off Douglas Elliman Inc.
November 07, 2021
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Vector Group Ltd. (NYSE:VGR) intended to spin off Douglas Elliman Inc. on November 8, 2021. Post completion, Douglas Elliman Inc. will become standalone publicly traded company. On December 21, 2021, Vector Group Ltd signed definitive agreement for the transaction. Douglas Elliman will register its common stock under Section 12 of the Securities Exchange Act of 1934 and has applied to list its common stock on the New York Stock Exchange (the NYSE) under the symbol DOUG. Following the spin-off, Vector Group will continue to trade on the NYSE under the symbol VGR. Douglas Elliman will own and operate the real estate services and property technology (PropTech) investment business currently owned and operated by Vector Group through its subsidiary New Valley, LLC. Completion of the transaction is subject to various conditions, including final approval by the Board of Directors of Vector Group, receipt of a tax opinion from counsel and the effectiveness of the Form 10 registration statement. The board of directors of Vector Group has approved the spin-off of Douglas Elliman Inc. The distribution is expected to take place on December 29, 2021 to holders of Vector Group common stock of record as of the close of business on December 20, 2021, the record date for the distribution. Each Vector Group common stockholder will receive one share of Douglas Elliman common stock for every two shares of Vector Group common stock held as of the record date.
If all conditions are met, the spin-off is on track for completion late in the fourth quarter of 2021. As of December 13, 2021, transaction is expected to be completed in late-December 2021. As of December 16, 2021, The distribution is expected to take place on December 29, 2021. Jefferies LLC served as financial advisor to Vector Group and Alison S. Ressler, Robert W. Downes, Marc Treviño, Kristen B. Klein, Davis J. Wang, Inosi M. Nyatta and Benjamin S.D. Kent of Sullivan & Cromwell LLP served as legal counsel to Vector Group and Douglas Elliman.
Douglas Elliman Inc. is a holding company. The Company is engaged in the real estate services and property technology (PropTech) investment business. The Company's segments include Real Estate Brokerage, and Corporate and other. The Real Estate Brokerage segment provides residential real estate brokerage services through its subsidiary Douglas Elliman Realty, which operates residential brokerage company in the New York metropolitan area and also conducts residential real estate brokerage operations in Florida, California, Texas, Colorado, Nevada, Massachusetts, Connecticut, Maryland, Virginia and Washington, D.C. The Corporate and other segment includes operations of the Company's holding company as well as its investment business that invests in select PropTech opportunities through its New Valley Ventures subsidiary. The Company's PropTech investments include Rechat, Purlin, Humming Homes, LiveEasy, Fyxify, Bilt, Persefoni AI, Tongo, Guest House, Alpaca and Infinite Creator.