Dana Holding Corporation said its board had approved an expanded common share repurchase program of up to US$1bn, an increase of about $900m over the more than $100m already returned to shareholders under the company’s previous repurchase authorisation.
Dana plans to repurchase its shares either in the open market or through privately negotiated deals over the next two years. The stock repurchase is subject to prevailing market conditions and other considerations and the company expects to have sufficient liquidity to support this initiative.
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“This expanded programme reflects confidence in the long-term prospects of our business and our commitment to delivering value to all of our shareholders,” said president and CEO Roger Wood. “We continue to review our capital structure with the goal of best utilising our strong balance sheet to maximise shareholder value.”
Dana also refinanced its current US revolving credit facility, establishing a new five-year, $500m credit line. This will both lower ongoing costs and increase financial flexibility. The company also continues to evaluate further credit market opportunities, it said in a statement.
