Synovus' Columbus headquarters. (Dave Bender)
Electronic payment processor TSYS (NYSE:TSS) said Thursday it will spin-off from parent Synovus Financial (NYSE:SNV) 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.
Synovus CEO Richard E. Anthony, in a statement to stockholders said:
"This change presents an exciting opportunity for each company to focus exclusively on its core business, which we believe will lead to increased shareholder value."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.
(With The Associated Press)
Click here for more GPB News Georgia business coverage.
