- Gannett (NYSE:GCI) says its board has approved the spinoff that will split the company into a broadcasting/digital firm and a publishing company.
- The creation of the broadcast side, named TEGNA (TGNA), and the side that will retain the Gannett name will take place via separation on June 29. Gannett's current shareholders will retain shares of Gannett (which will be named TEGNA) and receive a share of new Gannett (which will keep the name and GCI ticker) for every two shares of current Gannett stock owned as of a record date of June 22.
- New Gannett will then begin regular way trading June 29.
- The new publishing firm will be "virtually debt-free" and pay a $0.64/share annual cash dividend as well as take on a $150M buyback program for the next three years.
- Meanwhile, TEGNA will hold Gannett's existing debt of about $4.4B. It plans to pay a $0.56/share annual dividend. The combination with Gannett's $0.64 dividend marks a 10% increase over current payout. TEGNA will also embark on a $750M buyback program over three years.
- In addition to a swath of previous board announcements, Henry McGee will join the TEGNA board, and USA Today Publisher Larry Kramer will retire from that post and join new Gannett's board, along with Debra Sandler and Chloe Sladden.
- Previously: Gannett sets up post-spinoff boards, execs (Apr. 29 2015)