On Friday the 16th of October, Livongo released an 8-K document outlining the record date for the dividend will be October 29th, with shareholders receiving $7.09 per share. The date coincides with the special meeting of Livongo and Teladoc shareholders in which the merger is to be finalized. The expected payout date will be on or around the 3rd of November. For further information on the tax implications, you can find the full report here.
The 8-K contained further details on the merger, indicating that we can expect to see it close before the end of the fourth quarter of 2020. It also gave us an insight into the leadership structure of the combined company and there are some notable names heading for the exit. Zane Burke, CEO of Livongo, Jennifer Schneider, President of Livongo, and Lee Shapiro, CFO of Livongo will all “be departing the combined company over the course of time after the consummation of the Merger.” Taking into account the ousting of its leadership team and the fact that the new company will trade under the name ‘Teladoc Health’, this deal feels a lot more like an acquisition than a merger.
What’s next for Livongo shareholders?
As a Livongo shareholder, there isn’t much left to do but sit and wait until your shares are converted. Once the merger closes, each individual Livongo share will be converted to 0.592 shares of Teladoc Health. If you have further questions about the deal or need more information, I would recommend going through the joint proxy statement and prospectus which has been sent to all shareholders. As a shareholder, you will also be able to attend the special meeting on the 29th which will be held virtually. For more information, check out the statement from Livongo.
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Michael's first and favorite stock is Square, which he sees becoming a massive player in the payments industry and a leader in the war on cash.