ADESA, Inc. has announced that its majority stockholder, ALLETE, Inc., has established the record and distribution dates for the stock dividend of all ADESA shares currently owned by ALLETE.
On Sept. 20, ALLETE plans to distribute all of its shares of ADESA to its shareholders of record as of Sept. 13, 2004. ADESA and ALLETE anticipate that one share of ADESA common stock will be distributed for each share of ALLETE common stock outstanding. The distribution is structured to qualify as a tax-free stock dividend to ALLETE shareholders and will be done in book-entry form. Given the nature of the transaction, any holder of ALLETE common stock who sells shares on or before September 20 will also be selling their entitlement to receive shares of ADESA common stock in the spin-off.
David Gartzke, chairman of both ALLETE and ADESA, will continue as ADESA's chairman, CEO and president. He will resign as chairman of ALLETE upon the distribution.