Pointer Telocation (PNTR) will spin off some assets of its subsidiary

Pointer Telocation (PNTR) announced a fairly peculiar spinoff transaction. It has approved a plan to spin off certain assets and liabilities of its wholly owned subsidiary, Shagrir Systems into a new entity (NewCo). Thereafter Shagrir, with its remaining assets will be merged into Pointer. NewCo will purchase Shagrir’s current Road Side Assistance (RSA) and other related services. Following the spinoff, Shagrir will be merged into Pointer. The merger will occur on 12/31 and the spinoff will occur during 2015. The company will “use its best efforts” to register NewCo’s shares for trade on the Tel Aviv Stock Exchange. PNTR will continue to trade on the Nasdaq. Source