Syntel To Pay Special Dividend After Repatriating Cash Held Overseas

Syntel Inc. said Monday that it will pay a special cash dividend of $15 a share, as it brings $1.24 billion in cash held overseas back to the U.S. The Troy, Mich.-based information technology services company said the new dividend will be payable Oct. 3 to shareholders of record on Sept. 22. The company plans to fund the new dividend with the repatriated cash and a portion of borrowings under a new credit facility. The company expects to recognize a one-time tax expense of $264 million in the third quarter as a result of the cash repatriation. The stock, which was halted for news in premarket trade, is expected to resume trade at 9 a.m. ET. It has dropped 10% year to date to close Friday at a 23-month low, while the S&P 500 has gained 4.1%.