QIAGEN Says Plans To Return $250 Mln To Shareholders Via Repurchase Proposal

(RTTNews) - QIAGEN N.V. (QGEN) announced plans to return about $250 million to shareholders through a synthetic share repurchase proposal that combines a direct capital repayment with a reverse stock split. The company said that the proposal would adjust capital structure through 4% reduction in number of shares outstanding and direct capital repayment to shareholder

The company specified that the adjustment to its capital structure will be proposed at an Extraordinary General Meeting of Shareholders, which is scheduled to take place in October 2016. The related series of transactions are expected to be completed in early January 2017. The proposal, if adopted, is expected to be similar to QIAGEN repurchasing approximately $250 million of its own shares, but will enable the return of capital to all shareholders through a traditional open-market repurchase program.

QIAGEN said that it intends to fund the capital repayment, which forms part of a commitment announced in July 2016 to return $300 million to shareholders by the end of 2017, from existing cash reserves and expects to maintain its current non-rated, investment-grade credit profile.