Stock buyback program ends ahead of merger
Casino equipment maker and financial technology supplier Avery Holdings said it ended its share repurchase program on May 2. The company said in a press release on Monday that it had not bought back its own shares through the program since Dec. 31 last year.
Everi will complete a “strategic merger” with International Game Technology Plc’s gaming and digital business. The deal is expected to close “at the end of 2024 or early 2025, according to a February announcement.
In an announcement on Monday, Avery noted that the company has been authorized to buy back up to $180 million of its shares through Nov. 3 of this year under the share repurchase program currently in place.
Under the program, Everly acquired 7.5 million common shares at an average price of US$13.40 each for a total price of US$100 million.
In a statement on Monday, Avery said it may declare a special dividend. It will be paid to group shareholders on a record date before the merger with the IGT business is completed.
The company explained, “This is to reflect the cash flow generated by the company until the date of the merger.”
Avery also said on May 1 that it had implemented a mandatory sell-to-cover policy with respect to tax withholding obligations in relation to the fullness and settlement of restricted stock units and performance stock units. This was “in place of the company’s historical practice of withholding shares for the purpose of holding cash for special dividend purposes.”
The company said cash “which may have been used in other ways” would be “more appropriately allocated to special dividends” to facilitate tax-sourced obligations under its share repurchase program or in relation to share units.
Avery reported full-year 2023 net income of $84 million with revenue of $877.8 million, up 3.2% year-over-year.
Brokerage B. Riley Securities, Inc. suggested in an April note that IGT’s planned merger with its global gaming and play digital division could be a “modernizing dialysis machine” for the casino division.
BY: 슬롯사이트 순위