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Jacobs Solutions Declares Special Dividend of Amentum Shares

In a significant move for its shareholders, Jacobs Solutions, a leading global provider of technology and consulting services, has recently announced its Board of Directors' approval to distribute a special dividend comprising 7,299,065 shares of common stock of Amentum Holdings, Inc. This dividend is aimed at shareholders of Jacobs who are recorded as owning shares as of the close of business on May 16, 2025.

Overview of the Special Dividend

The Amentum Share Dividend is scheduled for distribution on May 30, 2025. This is a strategic decision by Jacobs that aims to enhance shareholder value by returning a portion of shares from its strategic partnership with Amentum. No action is required by shareholders to receive these shares, simplifying the process for current Jacobs investors.

Background on Amentum and its Importance

The arrangement comes in the wake of the Reverse Morris Trust (RMT) transaction, which took place on September 27, 2024. Under this transaction, Jacobs spun off parts of its Critical Mission Solutions and Divergent Solutions businesses, combining them with the legacy Amentum entity. The structure of this deal necessitated holding a portion of Amentum's shares in escrow until the definitive terms were finalized. Eventually, after determining the appropriate merger consideration, these 7.3 million shares were released for distribution to Jacobs’ shareholders.

Distribution Details

Jacobs intends to make the Amentum Share Dividend available to all shareholders listed on the record date. The final distribution ratio will be determined by dividing the total shares by the number of Jacobs common stocks outstanding by that date. Importantly, fractional shares will not be distributed. Instead, any fraction entitlements will be aggregated and sold publicly. The resulting cash from these sales will be proportionately distributed to shareholders entitled to fractional shares after accounting for expenses and taxes.

After the distribution, all the shares previously held in escrow will be fully allocated, signifying that Jacobs will no longer own any Amentum shares. Shareholders can expect to receive a book-entry account statement reflecting their ownership of the Amentum shares post-distribution or may see updates in their brokerage accounts.

Future Trading and Consultation

From May 16, 2025, the ex-dividend date, any acquisition of Jacobs stock will no longer grant rights to the special dividend. It is crucial that shareholders remain informed, as they will not be able to trade these Amentum shares before actual receipt. Amentum common stock, which has been listed on the NYSE under the symbol AMTM, will continue to trade as per the established norms.

To further aid its shareholders, Jacobs will provide detailed information surrounding the Amentum Share Dividend in an information statement that will elucidate specifics like the distribution ratio and tax implications for U.S. federal income tax purposes. This information will be accessible on Jacobs' Investor Relations website, emphasizing transparency in the process.

Looking Ahead

Jacobs remains committed to delivering value to its shareholders while navigating the complexities of its business strategies and partnerships. With about $12 billion in annual revenue and a workforce of nearly 45,000, Jacobs aims to spearhead solutions that drive operational effectiveness and sustainable practices in various sectors.

Investors are encouraged to consult with their financial professionals for deeper insights into the implications of this dividend on their portfolios. Jacobs continues to pave the way for its stakeholders, ensuring that strategic decisions align with their long-term corporate vision.

Conclusion

The announcement of the Amentum Share Dividend marks a noteworthy chapter in Jacobs' financial journey and its relationship with shareholders. As the company progresses, updates will be crucial for stakeholders to stay informed and engaged with their investments.