News Column

OM Group Announces Additional Share Repurchase Authorization, Declares Quarterly Cash Dividend

August 30, 2014



By a News Reporter-Staff News Editor at Investment Weekly News -- OM Group, Inc. (NYSE: OMG) announced that its Board of Directors has approved an additional share repurchase authorization of up to $50 million of its common shares. In 2013, the Board authorized the repurchase of up to $50 million of its common shares, of which the Company has repurchased $24 million through June 30, 2014. On a combined basis under both authorizations, $76 million remains available for repurchases, with no expiration.

"We are delighted to announce the additional share repurchase authorization, which underscores our commitment to shareholder value creation," said Joe Scaminace, Chairman and Chief Executive Officer of OM Group, Inc. "The additional authorization reflects our confidence in the long-term intrinsic value of the Company and its cash flow generation capabilities, and we believe that our shares represent an attractive investment opportunity. Our strategy includes a balanced approach of investing in our businesses, pursuing complementary acquisitions and returning capital to shareholders. We are confident that this strategy will deliver long-term value for our shareholders."

The Company may utilize various methods to effect the repurchases, which may include open market repurchases, negotiated block transactions, accelerated share repurchases or open market solicitations for shares, some of which may be effected through 10b5-1 Plans. Any repurchases would be funded from cash on hand or borrowings under the Company's credit facility. The timing of repurchases will depend on several factors including market and business conditions, and the repurchases may be discontinued at any time. The total remaining authorization of $76 million represents approximately 10% of the Company's current outstanding common shares based on yesterday's closing price.

OM Group also announced that its Board of Directors declared a quarterly cash dividend of $0.075 per share, payable on September 5, 2014, to stockholders of record as of August 22, 2014.

Keywords for this news article include: OM Group Inc, Investment and Finance.

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Source: Investment Weekly News


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