Stewart Information Services to Eliminate Dual Classes of Stock

Stewart Information Services in Houston plans to eliminate its dual classes of common stock.

The title insurance underwriter will direct the holders of its Class B common stock to exchange about 1.1 million shares for an equal amount of the other class of common stock plus $12 million of cash in the aggregate. After the transition, all holders of common stock will be entitled to one vote per share.

The elimination of the dual classes of stock will "help to strengthen Stewart's corporate governance, aligning voting rights with the economic interests of our stockholders," Chairman Thomas Apel said in a news release.

Holders of Class B common stock have approved the plan and the other group of shareholders must also approve the restructuring. The transaction is expected to close in the second quarter.

In October, Stewart reorganized its businesses under the Stewart Title brand for its core title business lines, and all other businesses under the Stewart brand, including Stewart Lender Services and Stewart Insurance and Risk Management.

Goldman Sachs is financial adviser to Stewart on the reclassification. Skadden, Arps, Slate, Meagher & Flom is legal counsel.