|[December 10, 2013]
MasterCard's Board of Directors Announces Capital Actions
PURCHASE, N.Y. --(Business Wire)--
MasterCard (News - Alert) Incorporated (NYSE:MA) today announced that its Board of
Directors has approved several capital actions:
A 10-for-1 stock split of the Company's common stock to be effected
through a stock dividend;
An 83% increase in the Company's quarterly cash dividend to $1.10 per
share ($0.11 per share after the stock split); and
A new share repurchase program authorizing the Company to repurchase
up to $3.5 billion of its Class A common stock.
"Today's actions reflect our ongoing commitment to deliver shareholder
value as well as our confidence in the long-term growth and financial
performance of our Company," said Ajay Banga, president and chief
executive officer, MasterCard.
The record date for the 10-for-1 stock split is the close of business on
January 9, 2014, with share distribution scheduled for January 21, 2014.
As a result of the split, shareholders will receive nine additional
shares of MasterCard common stock for each share they hold as of the
record date. Total shares of common stock outstanding will increase from
approximately 120 million to 1.2 billion based on the Company's share
count as of December 5, 2013.
The higher quarterly dividend of $1.10 per share on a pre-split basis,
up from $0.60 per share, is to be paid February 10, 2014 to shareholders
of record as of January 9, 2014.
The new share repurchase program will become effective at the completion
of the company's previously announced $2 billion share repurchase
program. As of December 5, 2013, the Company had $514 million remaining
under the current program authorization.
Statements in this press release which are not historical facts,
including statements about MasterCard's plans, strategies, beliefs and
expectations, are forward-looking and subject to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements speak only as of the date they are made.
Accordingly, except for the company's ongoing obligations under the U.S.
federal securities laws, the company does not intend to update or
otherwise revise the forward-looking information to reflect actual
results of operations, changes in financial condition, changes in
estimates, expectations or assumptions, changes in general economic or
industry conditions or other circumstances arising and/or existing since
the preparation of this press release or to reflect the occurrence of
any unanticipated events. Such forward-looking statements include,
without limitation, statements relating to the Company's long-term
growth and financial performance and the manner and amount of purchases
by MasterCard pursuant to its share repurchase program dependent upon
price and market conditions.
Actual results may differ materially from such forward-looking
statements for a number of reasons, including those set forth in the
company's filings with the Securities and Exchange Commission (SEC (News - Alert)),
including the company's Annual Report on Form 10-K for the year ended
December 31, 2012, the company's Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K that have been filed with the SEC during
2013, as well as reasons including difficulties, delays or the inability
of the company to achieve its strategic initiatives set forth above.
Factors other than those listed above could also cause the company's
results to differ materially from expected results.
(NYSE: MA), www.mastercard.com,
is a technology company in the global payments industry. We
operate the world's fastest payments processing network, connecting
consumers, financial institutions, merchants, governments and businesses
in more than 210 countries and territories. MasterCard's products and
solutions make everyday commerce activities - such as shopping,
traveling, running a business and managing finances - easier, more
secure and more efficient for everyone. Follow us on Twitter (News - Alert) @MasterCardNews,
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