Key Takeaways
- The board of directors finalized approval for Honeywell’s aerospace business separation, scheduled for June 29
- Shares of HON climbed approximately 4% during Monday’s morning session following the announcement
- Investors holding shares as of the June 15 record date will be allocated one HONA share for each two HON shares owned
- Following the separation, the parent company will rebrand as Honeywell Technologies and retain its HON trading symbol on Nasdaq
- Honeywell Technologies will execute a 1-for-2 reverse split concurrent with the completion of the spin-off
The board of directors at Honeywell International (HON) provided final authorization on Monday for the separation of its aerospace operations, cementing June 29 as the official date for the transaction.
Honeywell International Inc., HON
Shares of HON advanced roughly 4% during Monday’s early trading hours following the confirmation. The upward momentum was also supported by broader market optimism stemming from reports of a peace agreement between the United States and Iran.
The board’s formal authorization of the Honeywell Aerospace (HONA) share distribution to current stakeholders marks a critical phase in the corporate restructuring initiative that was initially announced earlier in the year.
Following the completion of the separation, the continuing entity will adopt the name Honeywell Technologies and maintain its presence on Nasdaq using the HON ticker symbol. The newly independent aerospace enterprise, trading as HONA, will concentrate on commercial aviation sectors, defense operations, and space industry markets.
Investors whose shares are registered as of the June 15 record date will be entitled to one Honeywell Aerospace share for each pair of Honeywell shares in their portfolio. The official distribution is scheduled for 12:01 a.m. New York time on June 29.
Honeywell Aerospace shares are anticipated to commence when-issued trading under the symbol HONAV approximately on June 15. Standard trading under the HONA ticker begins on June 29.
Dual Trading Structure During Transition
In the period leading up to the separation, HON will operate within two distinct trading markets. Shares trading under the standard HON ticker will include entitlement to receive HONA shares. Meanwhile, shares trading under the temporary designation HONIV will exclude this right.
Chief Executive Officer Vimal Kapur characterized the board’s approval as another significant milestone in the organization’s ongoing portfolio evolution, which has encompassed numerous acquisitions and asset sales over recent years.
The company also verified that Honeywell Technologies will implement a 1-for-2 reverse stock split immediately following the spin-off, accompanied by a proportional decrease in the authorized share total. This reverse split is contingent upon the successful completion of the separation.
Jim Cramer’s Perspective on the Split
CNBC’s Jim Cramer has expressed strong support for the transaction. His Charitable Trust maintains an investment position in HON, and he has indicated interest in expanding that stake.
“I think this is the kind of company that is not expensive, that has a great growth path,” Cramer remarked. He noted his intention to maintain ownership in both entities following the separation.
Cramer has drawn parallels between Honeywell’s restructuring process and DuPont’s transformation, arguing that investors have yet to recognize the full value being created. “People don’t respect Honeywell; they don’t respect it, and they’re making a very big mistake,” he stated.
The Securities and Exchange Commission declared the Form 10 registration statement for Honeywell Aerospace effective on June 11, removing the final regulatory obstacle for the transaction to proceed.
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