Allison Transmission (ALSN) Declares $0.15 Quarterly Dividend, 1.3% Yield; Reports $232M Share Repurchase from Ashe Capital, Boosts Buyback Plan to $3B (from $2B)

Allison Transmission (NYSE: ALSN) declared a quarterly dividend of $0.15 per share, or $0.6 annualized.

The dividend will be payable on May 31, 2019, to stockholders of record on May 20, 2019, with an ex-dividend date of May 17, 2019.

The annual yield on the dividend is 1.3 percent.

The company also announced that it has repurchased 4,977,043 shares of the Company’s common stock from Ashe Capital Management, LP (“Ashe Capital”) for $46.70 per share, or a total purchase price of approximately $232 million, representing a purchase price equal to the May 6, 2019 closing price pursuant to a Stock Purchase Agreement with Ashe Capital dated May 7, 2019. The transaction closed on May 9, 2019.

Following the closing of the transaction, Ashe Capital owns approximately 4.1% of the Company’s common stock and William R. Harker has resigned as a member of the Board of Directors (“Board”), effectively immediately.

“We have had a constructive relationship with the management team since we first invested in the Company in October 2013, and I have appreciated the opportunity to further build that relationship and contribute to the Company’s success as a board member these last two years,” said Mr. Harker. “Allison remains a key holding within our portfolio and we wish management continued success.”

Lawrence E. Dewey, Chairman of the Board stated, “We would like to thank Mr. Harker and Ashe Capital for their contributions over the years. During his tenure, Bill has engaged in thoughtful discussion about our business and played a valuable role on the Board. Ashe Capital remains a top shareholder and we truly appreciate their continued commitment to the Company.”

Stock Repurchase Authorization

The Company also announced that its Board has approved a new authorization under the Company’s current stock repurchase program for the repurchase of up to an additional $1 billion. The new authorization brings the total amount authorized under the program to $3 billion.

Repurchases under the program may be made in the open market, in privately negotiated transactions or otherwise, with the amount and timing of repurchases depending on market conditions and corporate needs. Open market repurchases will be structured to occur within the pricing and volume requirements of Rule 10b-18. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. This stock repurchase program does not obligate the Company to acquire any particular amount of its common stock and the program may be extended, modified, suspended or discontinued at any time at the Company's discretion.

For a dividend history and other dividend-related data on Allison Transmission (ALSN) click here.

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