Microsemi's Board of Directors Approves Stock Split
Microsemi Corp. (Irvine, CA) announced that its board of directors has approved a 2-for-1 stock split of its common stock. The company says that the split will be accomplished by way of a stock dividend, and hopes to declare the dividend in a little more than 60 days.
The board-approved proposal recommends increasing Microsemi's shares of common stock from 20 million to 100 million. The plan is still subject to shareholder approval.
Of the company's 20 million authorized shares of common stock, more than 15 million are outstanding, or committed, Microsemi said. The 2-for-1 stock split would increase the outstanding shares and the shares presently reserved for other purposes by 100 percent, or 15 million shares.
Until Microsemi amends its certificate of incorporation to authorize additional shares of common stock, there are too few shares authorized to accomplish the stock split, the company said. Authorizing the additional shares would accommodate the planned stock split and would also make additional shares available for other opportunities, such as further stock splits or dividends, stock offerings, stock acquisitions, and recruiting and retention of key technical and management personnel.
“Our strategy is to provide Microsemi with enough authorized capital stock for the future," said James J. Peterson, Microsemi's president and CEO, in a statement. “We feel that 100 million authorized shares is in line with comparable companies. Having this many authorized shares would provide needed flexibility."