DigitalBridge Group (NYSE: DBRG) has completed its previously announced reverse stock split of DBRG common stock at a ratio of 1-for-4, with a proportionate reduction in the outstanding shares of its common stock. The reverse stock split reinforces the completion of the company’s business transformation from a real estate investment trust to a competitive digital infrastructure investor, owner, and operator.
Importantly, the transaction aligns DigitalBridge’s outstanding share count with companies of similar size and scope, and is expected to generate additional administrative cost savings, in line with management’s ongoing initiatives to simplify and rationalize the company.
With the reverse stock split, the number of outstanding shares of Class A common stock and Class B common stock of the company were reduced to approximately 163.9 million shares and 0.2 million shares, respectively.
Yesterday, DigitalBridge common stock began trading on a split-adjusted basis on the New York Stock Exchange and will continue trading under the DBRG symbol, with a new CUSIP number 25401T 603. At market close, DBRG stock was $20.54, down half a percent from the previous day’s close.
American Stock Transfer & Trust Company LLC, the company’s transfer agent, is acting as exchange agent for the reverse stock split, with no action needed from DigitalBridge shareholders.
Each stockholder’s percentage ownership in the company and proportional voting power is unchanged after the transaction, except for minor changes resulting from the payment of cash for fractional shares and rounding of certain equity-based awards granted under the company’s equity incentive plan. Outstanding DigitalBridge equity-based awards and shares or share units under the plan were proportionately adjusted. The rights and privileges of stockholders are otherwise unaffected by the transaction.
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