The Manitowoc Co. announced it plans to undertake a reverse stock split of Manitowoc’s common stock at a ratio of 1-for-4 and a reduction in the number of authorized shares of its common stock from 300 million to 75 million shares. The reverse stock split will reduce the number of shares of Manitowoc’s common stock outstanding and is expected to increase the per share trading price of the common stock, which may improve marketability and facilitate its trading.
When the reverse stock split becomes effective, each four shares of Manitowoc’s common stock will automatically be changed into one share of common stock. Manitowoc does not anticipate issuing fractional shares as a result of the split. Shareholders entitled to receive fractional shares as a result of the reverse stock split will receive cash payments in lieu of such shares.
The reverse stock split will not change the proportionate equity interests or voting rights of holders of common stock, subject to the treatment of fractional shares. Manitowoc will hold a special meeting of shareholders in the fourth quarter of 2017 to seek approval of a proposal to authorize the reverse stock split and authorized share reduction. The affirmative vote of the holders of two-thirds of the shares entitled to vote at the special meeting is required to adopt and approve such proposal. Holders of record of Manitowoc’s common stock as of the close of business on Sept. 29, 2017, will be entitled to notice of and to vote at the special meeting.