Citizens Capital Corp yesterday announced that its board has approved the spin-off of 20 per cent of its wholly-owned SCOR Brands, Inc athletic footwear subsidiary to Citizens Capital shareholders of record.

The spin off shall be effected through a special stock dividend to shareholders of record only. In conjunction with the spin off, Citizens Capital will launch its next generation advanced financial and business-to-business transaction trading system technology.

The purpose of the spin off is to establish SCOR with its own independent operating identity in the $13.7bn athletic footwear market whose principal players are Nike and Reebok.

Billy D. Hawkins, chairman and CEO said: "The purpose of the spin-off is to enable SCOR and Citizens Capital to be better positioned to maximise operating efficiencies and growth opportunities for each company. We believe that Citizens Capital's current share price is materially undervalued given our current product and service mix and the eminent introduction of our next generation financial and business-to-business trading system technology. We are aggressively pursuing relationships and marketing alliances which we believe will enhance the presence and value of our advanced trading system technology."