IDT Corp. Cl B (IDT) Raises Quarterly Dividend 4.5% to $0.23; 3.7% Yield; Buys Back Stock; Updates on Spin-Off
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IDT Corp. Cl B (NYSE: IDT) declared a quarterly dividend of $0.23 per share, or $0.92 annualized. This is a 4.5% increase from the prior dividend of $0.22.
The dividend will be payable on July 12, 2011, to stockholders of record on July 1, 2011, with an ex-dividend date of June 29, 2011.
The annual yield on the dividend is 3.7 percent.
In addition, a Special Committee of the Board has approved the purchase by the Company of 302,000 shares of Class B Common stock from Howard Jonas at $24.83 per share – the closing price for the Class B stock on Monday, June 20, 2011. Following this purchase, Mr. Jonas will own or control 1,574,327 shares of IDT Class A Stock and 3,795,859 shares of IDT Class B Stock, together representing 23.67% of the total outstanding capital stock of the Company.
The Company recently disclosed that it was evaluating certain issues with respect to the previously announced intent to spin-off Innovative Communications Technologies, Inc, (ICTI). ICTI was to be the holder of certain patents and the related licensing business of the Company covering communications over computer networks including Voice over Internet Protocol (VoIP) communications. On Monday, the Board determined not to proceed with the spin-off, expressing concern that placing the enforcement of the patents with an independent entity not under the Company’s control would increase risks. The Company will continue to explore options for maximizing the potential returns from the IP while minimizing the associated risks to create the greatest overall value.
Finally, the Company re-affirmed its current plan to proceed with the spin-off of Genie Energy (comprising IDT Energy and Genie Oil and Gas). The Company recently filed a private letter ruling request, seeking the IRS’ concurrence that a spin-off of Genie Energy would be tax free to the Company and its shareholders. The Company is awaiting the IRS ruling and will continue to monitor developments in the markets and the business units to ensure that a spin-off remains in the best interests of shareholders. The Company expects the spin-off to go effective in the fall.
The dividend will be payable on July 12, 2011, to stockholders of record on July 1, 2011, with an ex-dividend date of June 29, 2011.
The annual yield on the dividend is 3.7 percent.
In addition, a Special Committee of the Board has approved the purchase by the Company of 302,000 shares of Class B Common stock from Howard Jonas at $24.83 per share – the closing price for the Class B stock on Monday, June 20, 2011. Following this purchase, Mr. Jonas will own or control 1,574,327 shares of IDT Class A Stock and 3,795,859 shares of IDT Class B Stock, together representing 23.67% of the total outstanding capital stock of the Company.
The Company recently disclosed that it was evaluating certain issues with respect to the previously announced intent to spin-off Innovative Communications Technologies, Inc, (ICTI). ICTI was to be the holder of certain patents and the related licensing business of the Company covering communications over computer networks including Voice over Internet Protocol (VoIP) communications. On Monday, the Board determined not to proceed with the spin-off, expressing concern that placing the enforcement of the patents with an independent entity not under the Company’s control would increase risks. The Company will continue to explore options for maximizing the potential returns from the IP while minimizing the associated risks to create the greatest overall value.
Finally, the Company re-affirmed its current plan to proceed with the spin-off of Genie Energy (comprising IDT Energy and Genie Oil and Gas). The Company recently filed a private letter ruling request, seeking the IRS’ concurrence that a spin-off of Genie Energy would be tax free to the Company and its shareholders. The Company is awaiting the IRS ruling and will continue to monitor developments in the markets and the business units to ensure that a spin-off remains in the best interests of shareholders. The Company expects the spin-off to go effective in the fall.
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