Janus plans to swap 32.3 million of the nearly 40 million shares it owns in DST Systems, a data processing subsidiary, in exchange for ownership of a commercial printing and graphic design unit of DST, Janus announced Monday. Janus will rename this unit JCG Partners.
Under terms of the deal, DST must contribute the cash equivalent of the 32.3 million shares to JCG Partners. Janus will determine the price based on the average price of DST stock in the 20 trading days after close of the transaction, which is expected to occur in the fourth quarter. However, Janus has set a minimum price of $30 and a maximum price of $34.50, which means that DST must contribute between $969 million and $1.114 billion. DST opened Tuesday at $37.67.
In turn, JCG Partners must purchase between $350 million and $450 million of Januss $840 million debt load. The deal has been structured as a tax-free exchange.