Xerox Corp announced on Thursday implementation of a change in its corporate structure into a holding company after which it will become part of that new holding company as a wholly owned units of its.
With this current move of reorganizations, the printer maker company is expecting to be getting more flexibility around its operational, strategic and financial activities.
The structural reorganization is expected to be implemented in mid of this year and shares of newly formed holding company will continued to be trading under the Xerox’s current ticker “XRX” on the New York Stock Exchange.
In Form 8-K for reorganization filed with the United States Securities and Exchange Commission on Thursday, Xerox stated that the company will not be changing its business operations, executive officers or directors while going through the structural changes.
Xerox’s board of directors has approved reorganization of the company’s corporate structure into a holding company structure on Wednesday.
The Norwalk, Connecticut-based company is still in requirement of its reorganizational move to be approved by its shareholders as well as by the regulators.
The structure of holding company allows a transforming firm to protect its patents, lowering its tax bills and to diversify the businesses efficiency of its units, as in 2015, Google also formed a holding company Alphabet In by combining separate units and now Xerox is joining it going through similar plans.
Under the leadership of Chief Executive Officer John Visentin, in the last two quarters, Xerox not only came on beating the profit estimates but also remained adopting the strategies to reorganize its business under the new management.
Last year activist investors Carl Icahn, who also appointed the current CEO John Visentin, and Darwin Deason strongly opposed a Xerox’s complex deal to merge with Fujifilm Holdings Corp which finally remained failed to be completed successfully.