Synovus completes Tsys spin-off
02 January 2008 | 1662 views | 0
Synovus (NYSE: SNV), the Columbus, Georgia-based financial services company, today announced that it completed the spin-off to Synovus' shareholders of the shares of TSYS stock formerly owned by Synovus.
The spin-off was completed on December 31, 2007 when each Synovus shareholder of record as of December 18, 2007 received .483921 of a share of TSYS common stock for every share of Synovus common stock held on that date. Shareholders of Synovus will receive cash in lieu of fractional shares for amounts of less than one TSYS share. As a result of the distribution, TSYS is now a fully independent, publicly-traded company. Immediately prior to the spin-off, TSYS paid on a pro rata basis to its shareholders, including Synovus, a one-time special cash dividend of $600 million.
Synovus has adjusted its dividend so that Synovus' shareholders who retain their TSYS shares will initially receive, in the aggregate, the same dividend per share that existed before the spin-off. As a result, Synovus has lowered its annual dividend per share from $0.82 to $0.68. Initially, TSYS' annual dividend per share is expected to remain at $0.28, which translates to an aggregate $0.82 dividend per share to Synovus shareholders who retain their TSYS shares. Decisions regarding future dividends will be made independently by the Synovus Board of Directors and the TSYS Board of Directors for their respective companies.