Conduent Incorporated (NASDAQ: CNDT) shares gathered steam Monday. The company, a global technology-led business solutions and services company, today announced that it entered into and consummated a share purchase agreement to repurchase all of the shares of the Company’s common stock beneficially owned by Carl C. Icahn through certain of his affiliates at a purchase price of $3.47 per share, the closing price of the Company’s common shares on June 7, the last full trading day prior to the execution of the Purchase Agreement. The aggregate purchase price for the repurchase is approximately $132 million, which was funded from Conduent’s cash on hand and existing credit facility.
Following the purchase, says Monday’s news release, the Icahn Parties no longer hold any Conduent common shares. In connection with the transaction, Hunter Gary, Jesse Lynn and Steven Miller, who are employed by the Icahn Parties, have resigned from the Company’s board of directors.
“Our decision to repurchase shares reflects the confidence we have in our business, our strategy and our long-term growth prospects,” said CEO Cliff Skelton. “Following this transaction, we will continue to focus our capital allocation in the near-term on additional pay down of debt to further reduce our debt leverage ratios. I would also like to thank Carl for his support and his team for their contributions to our Company over the years.”
CNDT shares acquired 17 cents, or 4.9%, to $3.64.
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