Frequently Asked Questions

1. Why is Nationwide Financial Services no longer a publicly traded company?
2. What consideration was paid by Nationwide for the NFS common stock?
3. Can NFS common stock still be traded?
4. What are the tax implications of this cash exchange?
5. How do I compute the cost basis in NFS stock for tax purposes?
6. Who is coordinating payment for the NFS common stock and how do I contact them?

1. Why is Nationwide Financial Services no longer a publicly traded company?

Effective January 1, 2009, NFS became a wholly-owned subsidiary of Nationwide Mututal Insurance Company ("Nationwide") and a private company ("the transaction").

As part of the transaction, Nationwide purchased all of the outstanding shares of common stock of Nationwide Financial Services it did not already own. Accordingly, NFS has filed the required documents with the SEC and the New York Stock Exchange to voluntarily delist the company’s class A common stock from the New York Stock Exchange.

2. What consideration was paid by Nationwide for the NFS common stock?

As a result of the transaction, NFS’ common stock has been canceled and converted into the right to receive consideration of $52.25 per share, without interest.

3. Can NFS common stock still be traded?

No. The shares of NFS have stopped trading and can no longer be transferred.

4. What are the tax implications of this cash exchange?

The receipt of the transaction proceeds by U.S. holders of NFS common stock will be a taxable transaction for U.S. federal income tax purposes (and may also be a taxable transaction under applicable state, local and foreign tax laws). Each shareholder should receive a 1099B to assist in completing their tax filing.

5. How do I compute the cost basis in NFS stock for tax purposes?

If you purchased your stock in the open market or through dividend reinvestment, the cost basis is generally what you paid for the shares.

If you received shares of NFS stock in connection with the Provident Mutual demutualization, the cost basis for tax purposes is unclear. The IRS has historically taken the position that the cost basis of stock distributed to policy holders as part of a demutualization is zero. However, a recent Court of Federal Claims ruling (Fisher v. United States) disagreed with the IRS and held that the taxpayer does have a basis in stock received as part of a demutualization. The IRS has appealed the Court of Federal Claims ruling and so at this time it is unknown how this issue will ultimately be decided by the courts. As calculation of the tax basis can be different for each shareholder based upon individual circumstances, we strongly urge you to consult a tax adviser.

6. Who is coordinating payment for the NFS common stock and how do I contact them?

BYN Mellon Shareowner Services is the paying agent for the cash exchange of NFS common stock in connection with the transaction.

BYN Mellon can be contact as follows:

By Telephone – 9 a.m. to 7 p.m. New York Time, Monday through Friday, except bank holidays:

From within the U.S., Canada or Puerto Rico: 1-866-205-6902 (Toll Free)
From outside the U.S.: (201) 680-6579 (Collect)

By Mail:
BNY Mellon Shareowner Services
Attn: Corporate Actions Department
P.O. Box 358300
Pittsburgh, PA 15252-8300