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On January 30th Google, Inc. (Nasdaq:GOOG) announced that its Board of Directors approved the distribution of Class C shares to its stockholders. NASDAQ OMX is providing the information below to clarify the effect of this distribution on Google Class A shares.
Additional information on the announcement can be found in Google's press release, the relevant part of which states:
Google Inc. announced today that its Board of Directors has approved a distribution of shares of the Class C capital stock as a dividend to our stockholders with a dividend record date of March 27, 2014 and a dividend payment date of April 2, 2014.
As a result of this transaction, upon distribution the Google Class C shares will be added to all NASDAQ OMX Indexes that contain Google Class A shares, including, but not limited to, the NASDAQ-100 Index®, the NASDAQ Internet Index® and the NASDAQ OMX Global Index Family, effective prior to market open on the April 3, 2014, the ex-date of the distribution. Both classes of shares will remain temporarily in the Indexes until the next quarterly rebalancing, when the Class A shares will be removed from the Indexes. This action is being taken in order to provide for a seamless distribution of the new securities and ensure Index continuity.
Projected Trading Timeline
March 27 – April 2
Record Date – Payment Date
Class C shares commence trading on March 27 as GOOCV on a when issued basis
Class A shares continue to trade as GOOG, with entitlement to Class C shares
Class A shares will also trade on an ex-distribution basis, without entitlement to the Class C shares, as GOOAV
April 3
EX Date
The ticker for the Class A shares will change from GOOG to GOOGL
The ticker for the Class C shares will change from GOOCV to GOOG and commence regular way trading
The ticker for the Class A shares that traded on an ex-distribution basis – GOOAV – will be suspended
Projected Index Timeline
April 3
Ex Date
Prior to market open on Thursday, April 3, 2014, Google Class C shares will be added to the pertinent NASDAQ OMX indexes. In addition, adjustments will be made to the previous closing price of the Google Class A shares, to reflect the pro rata distribution of the Class C shares.
April 3 – June 20
During this time period, both Class C and Class A shares will represent Google in NASDAQ OMX Indexes that previously included the Class A shares as a constituent, including the NASDAQ-100 Index.
June 23
Quarterly Rebalancing
Prior to market open on Monday, June 23, 2014, Google Class A shares will be removed from the NASDAQ OMX Indexes and Google Class C shares will become the sole security representing Google in NASDAQ OMX Indexes.
