The previously announced spin-off of Cars.com from TEGNA — which will ultimately results in two publicly traded companies — has been greenlit by the board of directors at TEGNA.

TEGNA, which is already publicly traded, said in a news release Wednesday that Cars.com will be spun off through a pro rate distribution of its outstanding shares to TEGNA stockholders (as of end-of-business on May 18).

In addition to keeping their TEGNA shares, these stockholders will get one share of Cars.com for every three TEGNA shares they own at that time (EOB on May 18).

Cars.com will pay TEGNA a one-time $650 million cash distribution.

The companies expect to finish the separation on May 31, with “regular way” trading of Cars.com shares expected to start June 1. The spin-off is subject to the conditions that Cars.com noted in a preliminary information statement that it filed on From 10 with the Securities and Exchange Commission.

Gracia Martore, the president and chief executive officer of TEGNA, is retiring when the spin-off closes. Appointed to that role when the separation is complete is Dave Lougee.

Alex Vetter, who has been president and chief executive officer of Cars.com since 2014, will retain that position with Cars.com. He is one of the company's original management members.

“We are approaching a watershed moment for Cars.com and I couldn’t be more excited about our future. As an independent company, we have greater flexibility to capture the opportunities ahead of us by leveraging our strong brand, innovative platform and expanding, loyal audience,” Vetter said in a news release.

“We are a pure-play digital company in an excellent position to drive long-term growth and profitability, and we are a unique investment opportunity in the digital automotive space,” he said.

Once the separation is complete, TEGNA will continue trading on the New York Stock Exchange as TGNA, with Cars.com trading the “regular way” on the NYSE as CARS.

“Holders of TEGNA common stock who sell TEGNA shares regular way on or before May 31, 2017 will also be selling their right to receive shares of Cars.com common stock in the distribution,” TEGNA said in the release. “Investors are encouraged to consult with their financial advisors regarding the specific implications of buying or selling TEGNA common stock before the distribution date.