Cognizant launches $300 million accelerated share repurchase
Cognizant said it would return $3.4 billion in capital to shareholders via buybacks and dividends.
By Jochelle Mendonca, ET Bureau |
Bengaluru: Cognizant said it had entered into an accelerated share repurchase agreement with SocieteGenerale to buy about $300 million of its common stock, as the IT firm hopes to complete the second stage of its previously disclosed $1.2 billion buyback program by the end of 2018.
Last year, Cognizant said it would return $3.4 billion in capital to shareholders through a mix of buybacks and dividends. The capital return policy was created after activist shareholder Elliott Management disclosed a 4% stake in the Teaneck, New Jersey –headquartered firm and asked it to improve shareholder returns and shake up its board.
Under the terms of the repurchase agreement, about 3.04 million of the shares to be repurchased will be received by Cognizant on March 14, 2018. Cognizant said it would fund the repurchase with a mix of cash on hand and its existing credit facility.
Last year, Cognizant said it would return $3.4 billion in capital to shareholders through a mix of buybacks and dividends. The capital return policy was created after activist shareholder Elliott Management disclosed a 4% stake in the Teaneck, New Jersey –headquartered firm and asked it to improve shareholder returns and shake up its board.
Under the terms of the repurchase agreement, about 3.04 million of the shares to be repurchased will be received by Cognizant on March 14, 2018. Cognizant said it would fund the repurchase with a mix of cash on hand and its existing credit facility.
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