The board of directors of Nacco Industries Inc has declared a stock dividend of Hyster-Yale Materials Handling Inc shares as a prelude to a spin-off of the business to shareholders.

Nacco's plan to transition the forklift business to an independent public company was disclosed in a 28 June securities filing.

Nacco intends to distribute the shares on 28 September to stockholders of record at the close of business on 25 September. The dividend includes one share of Hyster-Yale Class A common stock and one share of Hyster-Yale Class B common stock for each share of Nacco Industries Class A or Class B common stock owned on the record date.

For US federal income tax purposes, the distribution is structured to qualify as a tax-free dividend to Nacco shareholders.

Hyster-Yale has applied to the New York Stock Exchange (NYSE) for listing of Hyster-Yale Class A common stock under the trading symbol HY. Nacco trades on the NYSE under the symbol NC.

Nacco says its Class A common shares will continue to trade in the "regular-way" market throughout the period leading up to, and including, the distribution date.

"Any holder of NACCO Class A common shares who sells such shares in the 'regular-way' market on or before 28 September 2012 will also be selling the entitlement to receive shares of Hyster-Yale in respect of such shares," Nacco says. "It is expected that a 'when-issued' trading market for Hyster-Yale Class A common shares will develop before the record date if the NYSE approves Hyster-Yale's application for listing. Even though 'when-issued' trading may develop, none of these trades will settle before the record date, and if the spin-off does not occur, all 'when-issued' trading will be null and void."

For the six months ended 30 June, the forklift business accounted for 78% of Nacco Industries' revenues, or USD1.23 billion of the corporation's total of USD1.58 billion.

After the spin-off, Nacco's remaining subsidiary operations will include Hamilton Beach Brands Inc small electric household appliances, The Kitchen Collection LLC retail kitchenware and gourmet foods and North American Coal Corp mining and coal marketing business.

Hyster-Yale, formerly known as NMHG Holding Co, designs, engineers, manufactures, sells and services a line of forklifts and aftermarket parts marketed under the Hyster, Yale and Utilev brand names, mainly through independent retail dealerships. The forklifts and components are manufactured in the US, Northern Ireland, Mexico, the Netherlands, the Philippines, Italy, Japan, Vietnam, Brazil and China.

As reported in a 16 March proxy statement, Alfred M Rankin Jr and numerous of his relatives control major portions of Nacco Industries' outstanding shares of common stock. Rankin, 70, is Nacco chairman, president and chief executive officer.

Because no stock will be issued in connection with the spin-off, Nacco Industries will not receive any proceeds from the spin-off.