CA to Repurchase $590 Million of Shares From Largest Holder
November 18 2015 - 9:17AM
Dow Jones News
By Tess Stynes
CA Technologies (CA) agreed to repurchase 22 million of its
shares from its largest stockholder, Careal Holding AG, in a deal
valued at roughly $590 million, effectively completing the
company's previous $1 billion stock buyback authorization.
As a result, CA's board authorized the repurchase of an
additional $750 million in company stock. CA also said it plans to
raise its annual dividend by 2% in its fiscal year that ends in
March 2017.
"The transaction with Careal provided us with the opportunity to
accelerate our share repurchase program at favorable prices, and
highlights our long-term strategy of returning capital to
shareholders," CA Finance Chief Rich Beckert said Wednesday in
prepared remarks.
Careal recently owned roughly 125.8 million shares, or 28.68% of
CA's shares outstanding, according to FactSet.
CA also said it plans to raise its annual dividend to $1.02 a
share, an increase of two cents a share.
The Careal transaction, expected to close in the current
quarter, is seen benefiting CA's per-share earnings by four cents,
excluding certain items, for the current fiscal year ending in
March.
Meanwhile, Careal co-principal Martin Haefner plans to acquire
roughly 37 million CA shares for his personal investment
holdings.
Write to Tess Stynes at tess.stynes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 18, 2015 09:02 ET (14:02 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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