On or about April 7, Under Armour Inc. plans to complete the previously announced stock split that would give each of its shareholders another share of a new nonvoting stock for each one they own, the Baltimore-based athletic apparel brand said Wednesday.
Shareholders voted last August to approve the unusual split, which creates a Class C common stock and is designed to preserve CEO Kevin Plank's personal control over the company even as he sells off some shares.
The company said in a filing with the U.S. Securities and Exchange Commission Wednesday that its board of directors approved issuance of the stock.
Class C stock will be issued through a stock dividend to all existing holders of Under Armour's Class A and Class B common stock. Shares will be issued to stockholders of record as of March 28.
The company has applied to list the Class C stock under the UA.C ticker symbol on the New York Stock Exchange. Class A common stock will continue to trade under the UA ticker symbol.
The company has operated with a dual-tier stock structure in which the CEO owns most of the Class B shares, which have 10 times the voting rights of Class A shares. Under the new plan, that structure would end when Plank's ownership dips below 15 percent and all his Class B shares would convert to Class A shares.
During a shareholders meeting last year, Plank argued for the new class of stock as a way to maintain a "founder-led approach" to corporate governance that has resulted in soaring sales, profits and stock value for a decade.
Shares of Under Armour closed down 2 cents Wednesday at $81 each.