By Business Wirevia The Motley Fool
Filed under: Investing
Elan Announces Further Unlocking of Value To Benefit Shareholders
- Unique Cash Dividend For Shareholders
- Dividend Calculated As a Percentage of Tysabri Royalty Payments To Elan
- Initial Percentage To Be Paid to Shareholders is 20% of That Royalty
- Establishes Direct Link Between Shareholders And Tysabri Cash Flow
- Novel Construct Crystalizes Further Shareholder Benefit Post Tysabri Restructuring
DUBLIN–(BUSINESS WIRE)– The Board of Elan Corporation, plc (NYS: ELN) (the Company) has approved the decision to initiate a unique cash dividend policy enabling its shareholders to benefit directly from the long term cash flow generated by Tysabri.
The dividend program will be directly linked to Tysabri market performance calculated as a percentage of the Tysabri royalty paid to Elan from Biogen Idec as a result of the recently announced Tysabri restructuring. The initial percentage to be paid out directly to shareholders is 20 % of those royalties.
There is no cap to the dividend cash payments that will be generated from this direct link between shareholders’ equity and the long term cash flow of Tysabri. This dividend structure gives shareholders the right to enjoy unlimited participation in the upside from the Tysabri sales increase which we anticipate for the future.
The Company expects to pay these cash dividends to its shareholders in twice-yearly instalments. The first dividend is expected to be paid in the fourth quarter of 2013, subject to the closing of the recently announced Tysabri restructuring. Payment of the dividends will be made in accordance with applicable law, including, where applicable, shareholder approval.
According to the restructured Tysabri collaboration, Elan will receive 12% royalties on in-market sales of Tysabri in the first year from closing and thereafter 18% royalties on …read more
Source: FULL ARTICLE at DailyFinance