CarMax Separation from Circuit City Stores is Approved
Circuit City Stores, Inc. announced Sept. 16 that shareholders have approved the separation of the CarMax Group from Circuit City Stores, Inc. and that the company's board of directors has authorized the redemption of the company's CarMax Group Common Stock and the distribution of CarMax, Inc. common stock to effect the separation.
Shareholders approved the separation and several related proposals at a special meeting held Sept. 16. The separation is scheduled to become effective October 1, 2002. When the separation takes place, a share of new CarMax, Inc. common stock will replace each outstanding share of CarMax Group Common Stock. In addition, each holder of Circuit City Group Common Stock (NYSE:CC) will receive as a tax-free distribution approximately .314 share of CarMax, Inc. common stock for each share of Circuit City Group Common Stock he or she owns.