Vector Group’s board of directors has approved the spin-off of Douglas Elliman, which is expected to be completed in late December.
Upon completion of the spin-off, Vector Group will operate the tobacco segment of its business, which includes the manufacture and sale of cigarettes in the United States through Vector Group’s subsidiaries Liggett Group and Vector Tobacco, while also continuing to own interests in numerous properties and real estate projects across the United States.
Douglas Elliman will own and operate the real estate services and property technology investment business currently owned and operated by Vector Group through its subsidiary New Valley and will be capitalized with approximately $200 million in net cash and cash equivalents.
“The board’s approval of the spin-off paves the way for us to establish Douglas Elliman as an independent publicly traded company in the coming weeks,” said Howard M. Lorber, president and CEO of Vector Group and chairman, president and CEO of Douglas Elliman, in a statement. “We are confident this separation is in the best interests of Vector Group, Douglas Elliman, our stockholders and all our stakeholders.”
The distribution is expected to take place on Dec. 29, 2021, to holders of Vector Group common stock of record as of the close of business on Dec. 20, 2021, the record date for the distribution.