McDonald's commences Chipotle exchange offer

OAK BROOK, Ill. — McDonald's Corp. has commenced an offer of its remaining shares of Chipotle class B common stock.

 

The company said the exchange should generally be tax-free to participating shareholders.

 

McDonald's believes that a separation from Chipotle will afford Chipotle increased flexibility and decision-making power to pursue its own strategic objectives.

 

According to a news release, the exchange offer is designed to permit tendering shareholders to exchange shares of McDonald's common stock for shares of Chipotle class B common stock at a 10-percent discount to the per-share value of Chipotle class B common stock.

 

McDonald's owns 16.5 million  shares of Chipotle class B common stock, or approximately 88 percent of the outstanding shares of Chipotle class B common stock. Those shares represented approximately 82.2 percent of the voting interest and 50.8 percent of the economic interest in Chipotle, as of June 30.