Cannae Holdings, Inc. Announces Three Year, 10 Million Share Repurchase Program

Rhea-AI Summary

Cannae Holdings (NYSE:CNNE) has initiated a three-year stock repurchase program, allowing for the buyback of up to 10 million shares by February 26, 2024. The program aims to increase shareholder value as the stock is currently undervalued and trading below book value. Chairman William P. Foley, II, noted that these repurchases can enhance the book value per share, indicating confidence in Cannae's financial strategy and market position.

Positive

• Authorization of a $10 million share buyback program, signaling confidence in stock value.
• Repurchases aimed at increasing book value per share, potentially enhancing shareholder value.

Negative

• None.

Cannae Holdings, Inc. (NYSE:CNNE) (“Cannae” or the “Company”) today announced that its Board of Directors has authorized a three-year stock repurchase program, effective February 26, 2021, under which the Company may repurchase up to 10 million shares of its common stock. Purchases may be made from time to time in the open market at prevailing prices or in privately negotiated transactions through February 26, 2024. The repurchase program does not obligate the Company to acquire any specific number of shares and may be suspended or terminated at any time.

William P. Foley, II, Chairman of Cannae, commented, "Recent discussions with key investors reinforced my belief that Cannae stock is significantly undervalued. In fact, it's trading well below book value despite the recent impressive investments by Cannae, as outlined in our most recent report to shareholders. Repurchases around these price levels actually increase book value per share."

About Cannae Holdings, Inc.

Cannae Holdings, Inc. (NYSE: CNNE) is engaged in actively managing and operating a group of companies and investments, as well as making additional majority and minority equity portfolio investments in businesses, in order to achieve superior financial performance and maximize the value of these assets. Cannae was founded and is led by investor William P. Foley, II. Foley is responsible for the creation and growth of over $140 Billion in publicly traded companies including Fidelity National Information Services (“FIS”), Fidelity National Financial (“FNF”), and Black Knight, Inc. (“BKI”). Cannae’s current principal holdings include Dun & Bradstreet Holdings, Inc. (“DNB”), which recently completed a successful business transformation and IPO. Cannae holds an approximately 18% interest in Dun & Bradstreet or ~76 Million shares. Cannae’s second principal holding is Ceridian (“CDAY”), which Foley transformed from a legacy payroll bureau into a leading cloud-based provider of human capital management software. Cannae owns 9.5% of Ceridian representing approximately 14 Million shares.

Forward-Looking Statements and Risk Factors

This document contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions, or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: changes in general economic, business and political conditions, changes in the financial markets, and changes in the conditions resulting from the outbreak of a pandemic, such as the novel COVID-19 (“COVID-19”); the overall impact of the outbreak of COVID-19 and measures to curb its spread, including the effect of governmental or voluntary mitigation measures such as business shutdowns, social distancing, and stay-at-home orders; our potential inability to find suitable acquisition candidates, acquisitions in lines of business that will not necessarily be limited to our traditional areas of focus, or difficulties in integrating acquisitions; significant competition that our operating subsidiaries face; compliance with extensive government regulation of our operating subsidiaries; risks associated with our split-off from Fidelity National Financial, Inc., including limitations on our strategic and operating flexibility related to the tax-free nature of the split-off and the Investment Company Act of 1940; risks and uncertainties related to the success of our externalization.

This document should be read in conjunction with the risks detailed in the “Statement Regarding Forward-Looking Information,” “Risk Factors” and other sections of the Company’s Form 10-Q,10-K and other filings with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210301005281/en/

FAQ

What is the purpose of Cannae's stock repurchase program?

The program aims to enhance shareholder value by buying back shares that are currently undervalued and trading below book value.

How many shares can Cannae repurchase?

Cannae Holdings has authorized the repurchase of up to 10 million shares of common stock.

When will the stock repurchase program take place?

The program is effective from February 26, 2021, and will continue through February 26, 2024.

What does the stock repurchase program indicate about Cannae's valuation?

The program suggests that Cannae's management believes the stock is significantly undervalued based on discussions with key investors.