Synovus Financial Announces 1-for-7 Reverse Stock Split
Synovus Financial Corp. (NYSE: SNV) announced today that a proposal authorizing Synovus' Board to effect a one-for-seven reverse stock split of Synovus' common stock, par value $1.00 per share, was approved by Synovus' shareholders at Synovus' 2014 annual meeting of shareholders, which was held on April 24, 2014. Following the annual meeting, Synovus' board of directors formally authorized the one-for-seven reverse stock split.
Synovus anticipates that it will effect the reverse stock split on May 16, 2014, and that its shares of common stock will begin trading on a post-split basis on the New York Stock Exchange (NYSE) at the opening of trading on May 19, 2014. The reverse stock split is expected to lead to Synovus' common stock trading at approximately 7 times the price per share at which it trades prior to the effective date of the reverse stock split.
“We believe that this anticipated increase in the market price per share will help make our common stock more attractive to a broader range of investors, which we in turn believe will benefit our existing stockholders by enhancing the liquidity of our common stock,” said Kessel Stelling, Synovus Chairman and CEO.
Synovus intends to issue a press release announcing additional details regarding the reverse stock split closer to the effective date of the reverse stock split. Additional information on the effects of the reverse stock split can be found in Synovus' definitive proxy statement filed with the Securities and Exchange Commission on March 14, 2014.
In addition to the approval of the reverse stock split and certain other matters at Synovus' 2014 annual meeting of shareholders, Synovus' shareholders also approved an amendment to Synovus' articles of incorporation to increase the number of authorized shares of Synovus' common stock from 1.2 billion shares to 2.4 billion shares. Synovus effected this increase in the number of authorized shares on April 24, 2014. Upon the effective date of the reverse stock split, the number of Synovus' authorized shares of common stock will be proportionately reduced from 2.4 billion shares to approximately 342.9 million shares.
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