Motorola SPS Files for IPO

Online staff -- Electronic News, 12/17/2003

Motorola Inc. has filed statements with the U.S. Securities and Exchange Commission (SEC) for a $2 billion initial public offering (IPO) of its Semiconductor Products Sector business.

The news comes one day after Ed Zander, former Sun Microsystems president and COO, was appointed as the company's new CEO. Zander replaces Chris Galvin, who announced his resignation around the time Motorola announced its SPS spin-off plan.

The Registration Statement on Form S-1 was made by SPS Spinco Inc., the temporary name of the entity. A new name will be selected prior to the offering.

Under the transaction, SPS Spinco intends to issue shares of its Class A common stock. The spin-off company, however, did not say how many shares it plans to float or give an estimated price range.

Following the IPO, Motorola will own all the outstanding shares of SPS Spinco’s Class B common stock. Motorola said it intends to distribute all of its ownership interest in SPS Spinco to its common shareholders in a tax-free spin-off by the end of 2004.

No ticker symbol has been provided for SPS Spinco.