First American Spinoff Gets Government OKFriday, May 21, 2010
Santa Ana’s First American Corp. said on Friday that it received government approval for the spinoff of its core title insurance operations from the company’s growing information services division.
The regulatory approval clears up the last big hurdle for First American as it prepares for a June 1 spinoff that will create two local publicly traded companies: First American Financial Corp. and CoreLogic Inc.
First American Financial will house the company’s title insurance business and a few other business lines. CoreLogic will be the home for most of the company’s business data and analytics operation.
From a valuation standpoint, the spinoff will be the largest split Orange County’s seen in more than a decade. First American currently counts a market value of $3.5 billion.
Shares for the two companies will debut next week but aren't likely to see any trading until the spinoff takes place the following week.
First American said the government conditions it met include a positive ruling from the Internal Revenue Service, as well as approval from the California Department of Insurance and the Office of Thrift Supervision.
For more on the spinoff, see Monday's Orange County Business Journal.