Synovus Financial to spin-off TSYS |
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Thu, 25 Oct 2007 21:31
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COLUMBUS, Ga. (AP) - Electronic payment processor TSYS said Thursday it will spin-off from parent Synovus Financial Corp. to become an independent company.Financial services company Synovus, which owns an 81 percent stake in the company, will distribute all of its shares of TSYS common stock to Synovus shareholders.Based on the number of Synovus and TSYS shares outstanding as of Sept. 30, Synovus shareholders will receive about 0.49 shares of TSYS stock for every one share they own of Synovus. This distribution ratio is subject to change.Under terms of the agreement, TSYS will pay a one-time cash dividend of $600 million to all TSYS shareholders, including Synovus. The company plans to fund the dividend through a combination of cash on hand and a revolving credit facility. Based on the number of TSYS shares outstanding as of Sept. 30, TSYS expects its shareholders to receive a cash dividend of about $3.04 per share.The transaction is expected to be completed by the end of 2007, subject to certain conditions, including the approval of the Georgia Department of Banking and Finance.In connection with the spin-off, TSYS said it plans to hold a special meeting of shareholders to amend its articles and bylaws.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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