By Denny Jacob
Cannae Holdings' investment in Dun & Bradstreet Holdings is set to line shareholders' pockets.
The investment firm said it plans to use at least $460 million in proceeds from the recently announced sale of Dun & Bradstreet to repurchase shares of its common stock, pay future quarterly dividends and retire existing debt.
Cannae expects to repurchase at least $300 million of its common stock, including through a tender offer, shortly after the sale closes. The company also expects to retain an additional $60 million in proceeds to cover future quarterly dividends, while also repaying all $101 million outstanding under its existing margin loan that's collateralized by Dun & Bradstreet shares.
Cannae days earlier said it supports the acquisition as Dun and Bradstreet and signaled it would use returns for shareholder-friendly measures. Led by billionaire investor and sports owner Bill Foley, Cannae said it planned to sell up to 10 million of its 69.1 million Dun & Bradstreet shares ahead of the transaction's closing.
Dun & Bradstreet Holdings agreed last week to be acquired by private equity firm Clearlake Capital Group in a transaction valued at $7.7 billion, including outstanding debt.
The deal would provide shareholders with $9.15 in cash for each share they own. That would translate to about $632 million for Cannae, the company said.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
March 31, 2025 07:19 ET (11:19 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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