Yes, the Form 1099-B must be reported.
The issue is what to enter as the cost basis for these shares. If there is nothing in box 6 of the Form 1099-R, the cost basis of the shares is the amount reported in box 1 of the From 1099-R and the holding period is short-term.
If there is an amount in box 6, the cost basis is the amount in box 1 of the Form 1099-R minus the amount in box 6. The holding period on the box 1 amount is long-term while the holding period on any gains subsequent to the in-kind distribution, if any, is short-term.