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TEGNA announces $300M ASR, hikes dividend by 20% after merger termination with Standard General
© Reuters. TEGNA announces $300M ASR, hikes dividend by 20% after merger termination with Standard General
TEGNA (TGNA) shares rose around 3% after-hours following the company’s announced $300 million accelerated share repurchase (ASR) program and a 20% dividend hike. This follows the termination of the company’s merger agreement with an affiliate of Standard General L.P. The company is entitled to receive a termination fee of $136M from Standard General.
The company will enter into a $300M ASR agreement with JPMorgan Chase Bank, which will be funded through cash on hand ($683M at the end of Q1/23) and is expected to be completed by the end of Q3/23.
The company hiked its quarterly dividend by 19.7% to $0.11375 per share, or $0.455 annualized, for an annual yield of 2.9%. The dividend will be payable on July 3, 2023, to stockholders of record on June 9, 2023, with an ex-dividend date of June 8, 2023.
Earlier this month, the company reported its Q1/23 earnings, highlighted by in-line EPS and revenue miss.
The company will host an investor call to discuss its Q1 results and will provide guidance for the Q2 and full year on May 25, 2023, at 10:00 a.m. (ET).
By Davit Kirakosyan
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