Dana share repurchase increased to $1.4 billion
The Board of Directors at powertrain component supplier Dana Holding Corporation has authorised a US$400 million increase in its common share repurchase programme. This increase in the share repurchase programme brings the total to $1.4 billion since Dana’s share repurchase programme was initially announced in October 2012. As of 30 June 2014, Dana has returned $942 million to shareholders since the inception of the programme.
Dana plans to repurchase its shares either in the open market or through privately negotiated transactions through the end of 2015. The stock repurchase is subject to prevailing market conditions and other considerations. The company expects to have sufficient liquidity to support this initiative.
“The $400 million increase in our share repurchase programme highlights our board’s continued confidence in the future of Dana. We believe Dana’s stock represents an attractive investment in light of our earnings growth, strong free cash flow, and our robust capital position,” said Roger J. Wood, Dana president and chief executive officer. “Dana continues to be committed to disciplined capital allocation reflecting the importance of shareholder returns and maximising value.”
In addition, the company’s board declared a quarterly dividend of $0.05 per share, payable 12 September to holders of Dana common stock as of 22 August. It also authorised the payment of the final two dividends related to the mandatory conversion of the 4.0 per cent Series B Convertible Preferred Stock on 30 September.
A cash payment of $1.00 per share representing a quarterly dividend for the period ended 30 June 2014, will be payable 5 September, to preferred shareholders of record as of 15 August. The board also declared a final dividend to preferred shareholders representing the accrued dividend payment obligation under the terms of the Preferred Stock. A cash payment of $1.00 per share representing the final dividend will be payable 6 October, to preferred shareholders of record as of 29 September.