Initiates Quarterly Dividend,
Increases Authorized Stock Repurchases by $2.5 Billion, and
Enters Into $1.0 Billion Accelerated Share Repurchase Agreement
SanDisk Corporation (NASDAQ:SNDK), a global leader in flash memory storage solutions announced that it has expanded its capital return program with the initiation of a quarterly dividend and the authorization of $2.5 billion of additional stock repurchases. The company will complete part of this stock repurchase through a $1.0 billion Accelerated Share Repurchase ("ASR") agreement, which was entered into today.
The SanDisk Board of Directors has approved the initiation of a quarterly cash dividend of $0.225 per share of common stock, equivalent to an annual yield of approximately 1.6% based on the July 31, 2013 closing price of $55.12. On an annualized basis, this will return approximately $220 million to stockholders based on shares outstanding as of June 30, 2013. The first dividend payment will be made on August 30, 2013 to holders of record on August 12, 2013. Future dividend payments are subject to review and approval by the Board.
As of today, the company has entered into a $1.0 billion ASR agreement with a financial institution. Under the terms of the ASR, SanDisk will receive during the third fiscal quarter of 2013 an initial delivery of approximately 14.5 million shares based on current market prices. The final number of shares to be repurchased will be based on SanDisk's volume-weighted average stock price during the term of the agreement, which is expected to be completed no later than April 8, 2014.
The $2.5 billion of stock repurchase authorization brings the total amount authorized for stock repurchases to $3.75 billion. Approximately $2.1 billion remains available for repurchase following the execution of the $1.0 billion ASR agreement, year-to-date purchases of approximately $435 million and prior years' purchases.
"Today's announcements underscore our confidence in the company's business and our commitment to share our success with our shareholders," said Sanjay Mehrotra, president and chief executive officer of SanDisk. "The dividend provides immediate and ongoing returns to our shareholders, and we believe that utilizing our cash for share repurchases will add significantly to long-term shareholder value."
ABOUT SANDISK
SanDisk Corporation (NASDAQ: SNDK) is a global leader in flash memory storage solutions, from research and development, product design and manufacturing to branding and distribution for OEM and retail channels. Since 1988, SanDisk's innovations in flash memory and storage system technologies have provided customers with new and transformational digital experiences. SanDisk's diverse product portfolio includes flash memory cards and embedded solutions used in smart phones, tablets, digital cameras, camcorders, digital media players and other consumer electronic devices, as well as USB flash drives and solid-state drives (SSD) for the computing market. SanDisk's products are used by consumers and enterprise customers around the world.
SanDisk is a Silicon Valley-based S&P 500 and Fortune 500 company, with more than half its sales outside the United States. For more information, visit www.sandisk.com.
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