CA Technologies Announces Increase In Dividend, To Buy Back $750 Mln Stock

(RTTNews) - CA Technologies Inc. (CA) Wednesday said it plans to increase the dividend per share in Fiscal Year 2017 to $1.02 per share for the year, or $0.255 per share on a quarterly basis. This is up from the current $1.00 per share annual dividend, or $0.25 per share on a quarterly basis.

Further, the company said it has agreed to repurchase 22 million shares of its Common Stock from Careal Holding AG, its largest shareholder, in a private transaction valued at $590 million. The shares will be valued at $26.81 per share, representing 3 percent discount to the 10-trading day volume average, since November 5. The transaction is expected to close in the third quarter of Fiscal Year 2016 and it will be funded from US cash on hand.

Careal Holding disclosed that Martin Haefner, one of Careal's co-principals, will obtain around 37 million shares of CA common stock from Careal to add to his personal investment holdings. As part of the company's capital allocation strategy, CA's board of directors has authorized a new $750 million share repurchase program.

The company expects that the impact of the accelerated share repurchase will benefit earnings per share by $0.03 and adjusted earnings per share by $0.04 in Full year 16.