Dover Downs Entertainment Inc. (DVD)
directors want out of the gaming business so that they can concentrate on their
motorsports activities. To accomplish this they will spin off the gaming sector.
As of March 18, there will be two
companies, both trading on the N.Y. Stock Exchange. The principal company will
be called Dover Motorsports Inc and it will retain its trading symbol, DVD. The
second company will be called Dover Downs Gaming & Entertainment Inc. and
will trade under the symbol DDE.
All stock in DDE will be owned by those
holding stock in DVD. On the effective date, each shareholder in DDE will
receive 0.7 shares of Gaming and Entertainment common stock and 0.7 shares of
Dover Motorsports Inc.
The company said it already has
received a ruling from the Internal Revenue Service indicating that the spin off
will be tax free to the shareholders.
Dover Motorsports Inc. will own and/or
operate six motorsports tracks in states from Delaware to California.