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What are the different dates in a spin off event?

Personal Finance & Money Asked by user3429459 on June 23, 2021

I am new to the Spinoff corporate action and may I know the sequence and meaning of different dates?

From TechnipFMC Press release about spinoff (https://investors.technipfmc.com/static-files/84ec4cab-003d-4f17-b3f0-ad419a0dce5f), it mentioned the following:

TechnipFMC has established February 16, 2021 as the distribution date (the “Distribution
Date”) and 5:00 p.m., New York time, on February 17, 2021 as the record date (the
“Record Date”). On the Distribution Date, TechnipFMC shareholders on the Record Date
will be eligible to receive, based on the expected distribution ratio, one Technip Energies
share for every five TechnipFMC shares (the “Distribution”).

It seems the Distribution Date and Record Date are 16-Feb-2021 and 17-Feb-2021 respectively, and the distribution date is before the record date.

However, from another company spinoff announcement, it seems the distribution date is later than the record date. From https://finance.yahoo.com/news/verint-announces-record-date-distribution-133000591.html:

After the close of business on February 1, 2021, the distribution date for the spin-off, Verint will distribute to holders of Verint shares, as a pro rata dividend, one Cognyte share for every Verint share held on the close of business on January 25, 2021, the record date for the spin-off. Cognyte shares are expected to commence trading on a standalone basis on NASDAQ under the symbol "CGNT" on February 2, 2021.

It seems the distribution date and record date are 1-Feb-2021 and 25-Jan-2021 respectively, which the distribution date is after the record date.

May I know about the following?

  • Why do those 2 spin-off events have distribution dates and record dates in different orders?
  • In a spinoff event, what are the ex-date, payment date means? what is the normal sequence of record date, distribution date, ex date and payment date?

Many thanks for the help!

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