Synovus to spin off shares of TSYS

By Lisa Kerner

Charlotte, N.C., Oct. 25 - Synovus Financial Corp. will spin off some 159.6 million shares of Total Systems Services, Inc. stock it currently owns to Synovus shareholders most likely by the end of December. The record date for the distribution is Dec. 18.

The move is designed to unlock the value of Synovus' core banking franchise while enabling TSYS to enhance its growth and strategic position in the industry, according to a company news release. TSYS, a third-party card processor, was formed in 1983 by Synovus, a Columbus, Ga., financial services company.

Synovus expects to distribute about 0.49 of a TSYS share for each share of Synovus stock based on shares outstanding as of Sept. 30. The company said it will lower its annual dividend following the transaction to $0.68 from $0.82 per share.

Under the companies' agreement, TSYS will pay on a pro rata basis to its shareholders, including Synovus, a one-time cash dividend of $600 million, or about $3.04 per TSYS share.

"The Synovus board of directors believes that the spinning-off of TSYS will provide both companies opportunities to strategically accelerate growth," Synovus chairman and chief executive officer Richard E. Anthony said in the release.

"We also look forward to the opportunity for the Synovus team to exclusively focus on becoming the premier regional banking company in the Southeast."

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