Damark International Inc., Minneapolis, plans to break off its e-services business as an independent publicly traded company. The e-service entity, ClickShip Direct would be separated through a tax-free distribution of shares to Damark shareholders.
The division is planned because “access to capital will be made more efficient,” said Mark A. Cohn, chairman and CEO of Damark, in a statement. “Although both have outstanding growth prospects and compelling economic models, each competes in a different space with its own competencies and capabilities.”
The separation depends on a favorable tax ruling from the Internal Revenue Service.
Network
