IDT Corporation Begins Spin-Off of VoIP Related Patent Business to Shareholders
March 16 2011 - 8:30AM
Business Wire
IDT Corporation (NYSE: IDT; IDT.C) said today that it will
spin-off a portfolio of patents related primarily to communications
over computer networks, including Voice over Internet Protocol
(VoIP), and the licensing business related to those patents to its
shareholders.
IDT shareholders will receive one share in Innovative
Communications Technologies, Inc. (ICTI) which will consist of the
patents and the related licensing business, for every five shares
of IDT. The record date and share distribution dates have not yet
been determined. Upon completion of the spin-off, ICTI is expected
to trade on the over-the-counter market.
“It is likely that many companies are currently using the
technologies covered by these patents,” said Howard Jonas, IDT’s
Chairman, Chief Executive Officer and the founder of Net2Phone, a
pioneer in VoIP telecommunications that is now a wholly owned
subsidiary of IDT.
“As an independent publicly traded company, ICTI will be
optimally positioned to license these patents and enforce its
intellectual property rights. This spin-off maximizes the potential
to create substantial value for our shareholders from this IP over
the long term,” Mr. Jonas added.
Completion of the spinoff is subject to final approval by IDT’s
board of directors, confirmation of the tax-free nature of the
transaction, as well as effectiveness of a Form 10 registration
statement filed with the SEC.
ICTI’s Form 10 was filed yesterday with the SEC and includes
detailed information about ICTI, the spinoff and related matters.
ICTI’s Form 10 is available through the SEC website www.sec.gov.
ICTI has been assigned Central Index Key (CIK) 1515646.
ICTI will distribute an information statement to stockholders
following completion of the SEC’s review of the Form 10. IDT’s
board of directors reserves the right to amend, modify or abandon
the spin-off and the related transactions at any time prior to the
distribution date.
About IDT Corporation:
IDT Corporation (www.idt.net) is a consumer services company
with operations primarily in the telecommunications and energy
industries. IDT Corporation's Class B Common Stock and Common Stock
trade on the New York Stock Exchange under the ticker symbols IDT
and IDT.C, respectively.
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