Motorola to complete spinoff

Wednesday, 5 January 2011 00:01 - - {{hitsCtrl.values.hits}}

Motorola has completed its split-off, with Motorola Mobility to commence public trading on the NYSE.

The company yesterday announced that Motorola Mobility, its handset arm, will list on-schedule using the ticker code MMI.

Motorola Mobility will have an estimated market cap of around $9 billion. Motorola is betting on the spinoff to help turn around the run of losses from the unit.

Motorola Solutions, which will focus on devices such as public safety radios and handheld scanners, will use the code MSI.

Both entities have already begun public trading on a when-issued basis, which helps investors determine the opening price before official listing.

Motorola Mobility’s when-issued price has grown 25% since the start of trading, WSJ said, while Motorola Solutions shares have fallen by around 6.5%.

Motorola has for years been under pressure from shareholders, including activist investor Carl Icahn, to split its loss making handset unit.

As Motorola revealed in November, the separation will be conducted through reverse stock splits.

Motorola Mobility CEO Sanjay Jha last month warned the handset company is likely to report a loss in its maiden quarter due to competitive pressures.

Motorola also plans to sell the bulk of its wireless infrastructure business to NSN for $1.2 billion. The company last week revealed Chinese regulators had prevented it from reaching its goal of completing this sale before the split.