Temple-Inland spins off its financial, real estate groups

By Lisa Kerner

Charlotte, N.C., Dec. 31 - Temple-Inland Inc. completed its spinoff of Guaranty Financial Group Inc. and Forestar Real Estate Group Inc. on Dec. 28.

Tax-free distributions of Guaranty and Forestar common stock were made to Temple-Inland stockholders of record as of Dec. 14, a company news release stated.

Temple-Inland stockholders received one common share of Guaranty and one common share of Forestar for every three common shares of Temple-Inland. Cash payment will be made in lieu of fractional shares.

Guaranty and Forestar are now listed on the New York Stock Exchange under the respective trading symbols "GFG" and "FOR." Temple-Inland will continue to trade on the NYSE under the symbol "TIN."

It was previously reported that Temple-Inland would retain its corrugated packaging and building products manufacturing operations following the spinoff of Guaranty, which is involved in financial services, and Forestar, which has operations in real estate.

The company reported that most of the proceeds from the sale of its strategic timberland will be returned to stockholders through a special dividend of approximately $1.1 billion, or $10.25 per share. The remaining proceeds were used to pay down debt.

Austin, Texas-based Temple-Inland manufactures containerboard and converts it into a line of corrugated packaging.

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