B&N updates plan for campus bookstores spin-off

Barnes & Noble (BKS) on Monday gave investors updated details on the bookstore chain's previously announced plan to spin off its college books division into a separately traded company.

Investors will receive 0.632 shares of common stock in the new Barnes and Noble Education for each share of the bookstore chain they currently own, the New York City-based firm said in a filing with the Securities and Exchange Commission.

The company filing did not specify a record date of ownership that would make shareholders eligible for the distribution. However, the firm said investors "will not be required to pay any consideration for the common stock they receive in the spin-off, and they will not be required to surrender or exchange their shares of Barnes & Noble's common stock or take any other action in connection with the spin-off."

Barnes & Noble said the newly formed company would trade on the New York Stock Exchange under the symbol BNED. The education unit operates 714 stores on U.S. college campuses, and is expected to be spun off sometime later this year.

Barnes & Noble plans the change as it focuses on strengthening its retail bookstore division, which has been hit by competition from rivals that include e-tailing and delivery giant Amazon (AMZN), tech titan Apple (AAPL), discount retailer warehouse club Costco (COST) and textbook seller Chegg (CHGG).

In previous corporate filings, Barnes & Noble said the college division was poised for growth, with 55% of U.S. college bookstores currently operated by their own academic institutions. The spin-off could also enable the new company to make acquisitions of its own.

"Our business will be separate and distinct from Barnes& Noble's business and, accordingly, we believe that pursuing such growth opportunities will be greatly facilitated with a capital structure that is tailored for the company's needs, separate from those of Barnes& Noble," the company said in the SEC filing.

Shares of Barnes & Noble were up 50 cents at $26.17 in Monday morning trading.