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Pepsi board OKs spinoff
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August 15, 1997: 8:51 a.m. ET
Company will separate restaurant unit from beverage and snack businesses
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NEW YORK (CNNfn) - PepsiCo Inc. late Thursday announced its board has approved a $4.5 billion spinoff of its restaurant business that includes Pizza Hut, KFC and Taco Bell.
Under terms of the deal, stockholders will receive one share of the new restaurant company, called TRICON Global Restaurants Inc., for every 10 issues of Pepsi they hold.
PepsiCo will use a $4.5 billion payment from TRICON to reduce debt and buy back shares, the company said. It will retain the beverage and snack foods businesses.
The tax-free deal requires approval of the Securities and Exchange Commission.
The spinoff would take effect Oct. 6. 
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Pepsi World
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