Florham Park-based Conduent on Monday said it repurchased its shares owned by Carl Icahn at a purchase price of $3.47 per share, the closing price of the company’s common shares Friday.
The purchase price for the repurchase is approximately $132 million, which was funded from Conduent’s cash on hand and existing credit facility.
“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,” Cliff Skelton, CEO of Conduent, said.
Following the purchase, 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,” Skelton continued. “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.”
Icahn said: “We believe we have left the company in good hands with Cliff and the rest of the Conduent management team. We wish them the best.”
The transaction was unanimously recommended to Conduent’s board by a Special Transaction Committee of the Board, comprised solely of independent directors. The Special Transaction Committee was advised by independent legal and financial advisers. The entire board, except for members employed by Icahn parties, who recused themselves from the vote, voted in favor of the transaction.
Jefferies LLC acted as financial adviser to the Special Transaction Committee and Willkie Farr & Gallaher LLP served as independent legal counsel to the Special Transaction Committee. Holland & Knight LLP served as legal counsel to Conduent.
