2023-05-22 17:12:25 ET
Tegna ( NYSE: TGNA ) rose 5% in after hours trading after its planned sale to Standard General was terminated after failing to win regulatory approval for the deal and it announced a $300 million share repurchases plan.
Tegna announced a $300 million accelerated repurchase program and a 20% increase in its quarterly dividend, according to a statement . Under the terms of the merger agreement, Tegna is also entitled to receive a $136 million termination fee.
The deal termination comes after the Federal Communications Commission in late February said that Tegna's ( TGNA ) planned $24 a share sale to Standard General had to go to an administrative law judge, effectively ending the transaction . The transaction had a Monday deadline for deal termination.
Tegna ( TGNA ) will enter into a $300 million ASR agreement with JPMorgan Chase Bank, which is expected to be completed by the end of Q3. The Tegna board approved an increase its regularly quarterly dividend from 9.5 to 11.375 cents. Tegna will pay the previously declared regular quarterly dividend of 9.5 cents a share on July 3 to holders of record on June 9.
Tegna ( TGNA ) plans to hold an investor call to discuss its Q1 results and provide guidance on Thursday.
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Tegna jumps 5% after Standard General deal terminated, buyback announced