Sallie Mae (NASDAQ: SLM), formally SLM Corporation, announced today that its board of directors has unanimously approved the strategic separation of its loan management, servicing and asset recovery business, known as Navient, from its consumer banking business. Sallie Mae Bank’s consumer banking business will continue under the Sallie Mae brand. The board also set both the record date and the distribution date for the separation.
The Sallie Mae Board of Directors approved a dividend of Navient common stock on April 30, 2014, the “distribution date,” to Sallie Mae common shareholders of record as of the close of business on April 22, 2014, the “record date.” On the distribution date, Sallie Mae shareholders will receive one share of Navient common stock for each share of Sallie Mae common stock held by them on the record date.
“As two distinct companies both Sallie Mae and Navient will leverage our shared history of market leadership to encourage customer success. The separation also will position each company to better capitalize on strategic opportunities,” said John (Jack) F. Remondi, president and CEO. “This next chapter brings greater focus and enhanced value for our customers and our shareholders.”
Navient will begin trading on the NASDAQ under ticker symbol “NAVI” on May 1, 2014.
