Steel Dynamics Announces Two-for-One Stock Split
03/05/2008 - The Steel Dynamics board of directors approves a two-for-one split of the company's common stock as well as a 33% increase in the company's quarterly cash dividend.
Steel Dynamics’ board of directors has approved a two-for-one split of the company's common stock that will be carried out in the form of a 100% stock dividend. The board also approved a 33% increase in the company's quarterly cash dividend.
"These actions by our board are a clear indication of the confidence we have in our ability to continue driving growth and creating value for our shareholders, by capitalizing on many exciting opportunities that lie ahead," said Keith Busse, Chairman and CEO of Steel Dynamics.
For the two-for-one stock split, all common shareholders of record at the close of business on March 19,
2008, will receive one additional share of common stock for each share of common stock owned as of that date. The company expects to distribute the additional shares on or about March 28, 2008.
To accommodate the stock split, the board of directors also authorized a two-for-one split of the company's total authorized common shares, from 200 million to 400 million shares. The company's articles of incorporation will be amended to reflect that change. Under Indiana law, no shareholder approval is required to conduct the transaction.
Prior to the split, the company had paid (in 2007) an annual cash dividend of $0.60 per common share, or a quarterly cash dividend of $0.15 per common share, comprising a $0.10 regular dividend and a $0.05 special dividend. Effective with the first quarter of 2008, the board of directors has authorized elimination of the distinction between "regular" and "special" dividends, and has also authorized a 33% increase in the company's quarterly cash dividend, now resulting in a pre-split regular dividend of $.20 per common share (or a post-split regular dividend of $.10 per common share), payable to shareholders of record at the close of business on March 31, 2008. Distribution is expected to occur around April 11, 2008.
The company noted that all future transactions measured by reference to a specific number of common shares (e.g., outstanding stock options, securities convertible into common shares, the payment of dividends, shares authorized by existing share repurchase programs), as well as the related option, conversion or dividend prices or amounts, will be adjusted to reflect the two-for-one split.
