Fidelity National Financial Inc. announced a plan this morning to shed its controlling stakes in Black Knight Financial Services Inc. and Fidelity National Financial Ventures (FNFV), making both Black Knight and FNFV independent public companies.
Jacksonville-based Fidelity owns a majority of Black Knight’s shares and will distribute those shares to Fidelity stockholders.
Fidelity, which is mainly a title insurance company, spun off Black Knight, which provides technology services for mortgage lenders, with an initial public offering last year.
FNFV is a subsidiary of Fidelity consisting of Fidelity’s non-real estate-related businesses, including investments in several restaurant chains.
The business has traded as a tracking stock representing those investments, but Fidelity now plans to exchange shares of the tracking stock for shares of common stock in an independent FNFV.
Fidelity officials hope separating the stocks of the companies will increase the value.
“It has become clear that the complexity of our existing corporate structure is holding back FNF’s share price in general, and the value of our industry-leading title business in particular,” Chairman Bill Foley said in a news release.
The spinoffs are expected to be completed in the third quarter of 2017.
Foley just last month during Fidelity’s quarterly conference call said the company would likely hold on to Black Knight’s stock for at least a year because of debt issues related to Black Knight.
However, Black Knight CEO Thomas Sanzone said in a news release today that separating from Fidelity will benefit stockholders.
“The lack of liquidity in our common stock has been a concern for our current and prospective shareholders,” he said.
Black Knight has already been operating as a separate company. FNFV has been a business segment of Fidelity, and the company did not say how an independent FNFV will be structured.
Making FNFV independent will create a fourth public company headquartered at Fidelity’s office complex on Riverside Avenue.
Financial technology company Fidelity National Information Services Inc., which was spun off from Fidelity National Financial in 2006, also works out of that complex.