Allison Transmission Holdings Inc.(NYSE: ALSN), today announced that its Board of Directors has authorized a stock repurchase program for up to $500 million of its common stock, effective immediately, and has approved an increase in the Company’s quarterly dividend from $0.12 to $0.15 per share on the Company’s common stock.
The Company anticipates repurchasing its common stock under the stock repurchase program from time to time through December 31, 2016. 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.
The Company’s Board of Directors also declared a cash dividend of $0.15 per share on the Company’s common stock for the fourth quarter of 2014. Payment will be made on November 26, 2014, to stockholders of record at the close of business on November 10, 2014.
The payment of any future dividends will be at the discretion of the Board of Directors and will be dependent upon Allison Transmission’s financial position, results of operations, available cash, cash flow, capital requirements and other factors deemed relevant by the Board of Directors.
