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Popular plans to repurchase $500M of its own stock, increase value

Popular Inc. announced it will carry out common stock repurchases of up to $500 million and an increase in its quarterly common stock dividend from $0.30 per share to $0.40 per share, starting in the second quarter of 2020.

“We are pleased to announce our proposed capital actions for 2020 which are in line with our continued goal of delivering enhanced shareholder returns while maintaining prudent capital levels,” said Popular Inc. President Ignacio Álvarez.

The actions require approval from Popular Inc.’s board of directors, the financial institution confirmed.

“This increase in capital return to our shareholders reflects Popular’s strong financial and capital position. We remain focused on executing our strategic initiatives in order to continue driving long-term shareholder returns,” he said.

Common stock repurchases may be executed in the open market or in privately negotiated transactions. The timing and exact amount of the share repurchases will be subject to various factors, including market conditions and the company’s capital position and financial performance, the bank said.

The announcement of the planned common stock repurchases received no objection from the Federal Reserve System Board of Governors, the bank said.

Popular Inc. also announced that on Dec. 12, 2019, it completed the previously announced $250 million accelerated share repurchase transaction with respect to its common stock.

As a result, Popular Inc. received an initial delivery of 3.5 million shares of common stock during the first quarter of 2019 and received 1,165,607 additional shares of common stock on Dec. 12, 2019.

The final number of shares delivered at settlement was based on the average daily volume weighted average price of its common stock, net of a discount, during the term of the ASR, which amounted to $53.58. The company accounted for this as a treasury stock transaction, it announced.

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