Triumph Group, Inc. (TGI) recently announced that its Board of Directors has declared a two-for-one stock split with respect to its common stock in the form of a 100% stock dividend.
Based in Wayne, Pennsylvania, Triumph Group offers a variety of products and services to the aerospace industry.
A stock split simply involves a company altering the number of its shares outstanding and proportionally adjusting the share price to compensate. In a 2-for-1 stock split, every shareholder with one stock is given an additional share.
The two-for-one stock split will be payable on July 14, 2011 to stockholders of record as of June 22, 2011. Triumph currently has 24,517,850 shares of common stock outstanding. As a result of the stock split, Triumph will have 49,035,700 shares of common stock outstanding.
Meanwhile, Triumph announced that the company will continue to pay a quarterly dividend of $0.04 per share after the stock split (on a post-split basis). This move, in turn, will double the company’s annual dividend expense. Management stated that the company remains committed to increase shareholder value.
Last month, Triumph Group announced a public offering of its common stock. Triumph announced the public offering of its common shares with around 2.5 million shares being offered by investment funds associated with the private equity firm, The Carlyle Group.
Triumph will not receive any proceeds from the sale, while The Carlyle Group will hold approximately a 20% stake in the former. Earlier, Triumph completed the acquisition of Vought Aircraft Industries Inc. from The Carlyle Group for $1.44 billion, of which $525 million was paid in cash. Triumph allotted 7.5 million shares (a 31% stake) to Carlyle.
Be the first to comment