CBS Outdoor Americas Inc. filed to raise as much as $560 million in a U.S. initial public offering.
The billboard division of CBS Corp. plans to sell 20 million shares for $26 to $28 apiece, the New York-based company said today in a filing. CBS will own 83 percent of the unit after the IPO.
CBS Outdoor plans to convert into a real-estate investment trust, or REIT, later this year, according to the filing. REITs don’t pay federal income taxes, with the understanding that they distribute at least 90 percent of taxable earnings to shareholders as dividends.
About 47 percent of the company’s billboard displays are in New York while 13 percent are in Los Angeles, CBS Outdoor said. Revenue rose 0.7 percent to $1.3 billion last year.
Goldman Sachs Group Inc., Bank of America Corp. and JPMorgan Chase & Co. are among banks managing the offering. CBS Outdoor intends to list its shares on the New York Stock Exchange under the symbol CBSO.
CBS Corp., owner of the most-watched U.S TV network, rose 0.6 percent to $65.37 on March 14 in New York. The stock had gained 2.6 percent this year.
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