PISCATAWAY, N.J., Jan. 28, 2011 (GLOBE NEWSWIRE) -- PRG Group, Inc. (Pink Sheets:PRGJ), a leading full-service business process outsourcing company focused on serving middle-market enterprises, today announced that its Board of Directors has determined the recent performance and future projections for its Government Services Division merit it being spun off as an independent company. PRG Group, Inc will issue a dividend to its shareholders.
Record Date: The close of business on January 31, 2011, being the date for determining the holders of the Parent's common stock that will receive common shares of the Subsidiary as a dividend, as well as the date for determining the holders of the Parent's common stock that will receive an information statement regarding the dividend.
Dividend Date: The Company anticipates that within 30 days after the Record Date it will distribute the Dividend shares of the new company. This will be considered the date of the 'corporate action'. The exact date is subject to approval of the Securities and Exchange Commission.
Distribution Ratio: Shareholders of the Parent will receive as a dividend that number of common shares of the Subsidiary which is equal to one (1) common share of the Subsidiary for each hundred (100) common shares of the Parent held by them as of the close of business on the Record Date. No fractional shares or payment therefore shall be made incident to the dividend; rather any fractional shares of the Subsidiary to be received by the Parent's shareholders shall be rounded up to the next whole share.
The Board of Directors will meet on February 18th, 2011 to structure and finalize the corporate action. The company will notify its shareholders and will post a proxy form on its website for shareholders to participate in the final approval.
Uma Pandey, Chief Executive Officer of PRG Group, Inc. stated, "The Board of Directors has discussed this matter at length and feel it is in the best interest of our clients, channel partners, and shareholders that the Government Services Division of PRG Group, Inc. become an independent operating company. There are certain specific requirements relative to security clearance and special projects for State and Federal contracts that would best be handled separately. The potential of this unit to flourish is boundless and our current clients and channels are providing additional opportunities for revenue on an almost daily basis. We are very excited to extend this additional benefit to our shareholders."
About PRG Group, Inc.
PRG Group is a global information, consulting and technology provider that specializes in delivering company wide solutions specifically in the areas of managed services, remote support, business software integration and optimization, enterprise-wide voice, data, networking, unified communications, and security solutions to customers worldwide. PRG Group, Inc. supports middle-market established businesses that already outsource, and businesses seeking to maximize return-on-investment from their in-house workforce. For more information, please visit http://www.prg-group.com.
Statements made in this press release that are not historical facts constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21 of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such statements rely on a number of assumptions concerning future events, many of which are outside of the Company's control, and involve risks and uncertainties that could cause actual results to differ materially from opinions and expectations. All information in this release is as of the date hereof. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
CONTACT: PRG Group Inc Investor_Relations@prg-group.com Tel: 732 665 0008