McClatchy shareholders OK reverse stock split – Sacramento Bee
The McClatchy Co.âs shareholders approved a reverse stock split Wednesday designed to raise the Sacramento newspaper chainâs sluggish share price.
Shareholders authorized the reverse split at McClatchyâs annual meeting in Sacramento. McClatchy owns 29 daily papers, including The Sacramento Bee.
Under the plan, McClatchy will issue one new share of stock for every five existing shares. The split could be expanded; McClatchy could issue one new share for every 25 existing shares maximum. The final decision will rest with the companyâs board of directors, which will make the call within six months.
By taking shares out of circulation, the reverse split isnât expected to alter McClatchyâs overall valuation, but should increase the price per share. Because of ongoing struggles in the newspaper industry, McClatchy shares have slumped in recent years.
In February, the company was warned it could lose its New York Stock Exchange listing becuase the per-share price had fallen below $1 for 30 straight trading days. Although McClatchy avoided delisting, the stock price has remained barely above the $1 mark.
McClatchy shares were down 3 cents, to $1.08, in morning trading.