Barnes & Noble to separate education unit from business in August, resumes dividend payments

MarketsAssociated Press

Barnes & Noble will spin off its education unit in August and bring back its dividend payments.

The company first announced plans to separate the business in February as part of an effort to create two more focused companies.

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Barnes & Noble Education Inc. operates book stores on hundreds of college and university campuses in the United States. Barnes & Noble is the nation's largest bookseller with 658 stores across the country.

The company said that on Aug. 2, Barnes & Noble shareholders will receive 0.632 shares of the education unit's stock for each share of Barnes & Noble stock they hold as of July 27. At this point the company will be split into two separate businesses.

Shares of Barnes & Noble common stock will continue to trade on the New York Stock Exchange under the symbol "BKS". Barnes & Noble Education's common stock will trade trading under the symbol "BNED" on the same exchange following the split.

The company's board also approved plans to begin paying a 15-cent per-share quarterly dividend. Barnes & Noble's last dividend payment was in 2010. The first of the new payments is payable on August 17.

Shares of Barnes & Noble Inc. rose 2 percent to $28.52 by early afternoon Tuesday following the announcement.