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news.Covidien, a healthcare products company, has announced that its board of directors has unanimously approved moving the company's principal executive office from Bermuda to Ireland. This move is said to be part of a reorganization that will create a newly formed Irish company, Covidien plc.
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The first step in this reorganization is the establishment of Covidien’s tax residency in Ireland in December 2008. Covidien shareholders then will be asked to vote in favor of completing the reorganization at a shareholders meeting. If conditions are satisfied, including approval by Covidien’s shareholders and the Supreme Court of Bermuda, Covidien plc then will replace Covidien Ltd as the ultimate parent company.
Covidien does not expect the reorganization will have any material impact on its financial results. There will be no changes to Covidien’s US operations or workforce.
Covidien will, upon completion of the reorganization, continue to be subject to US Securities and Exchange Commission reporting requirements, and Covidien’s common shares will continue to be listed on the New York Stock Exchange under the symbol COV. Once the reorganization is completed, Covidien will terminate its listing on the Bermuda Stock Exchange.
Richard Meelia, chairman, president and CEO of Covidien, said: “The decision to move to Ireland was made after an extensive analysis of several possible alternatives. Assuming shareholder approval, incorporation in Ireland will offer increased strategic flexibility and operational benefits as we continue to expand the rapidly growing international portion of our business.”