Fed’s Powell opens door to potential rate cuts at Jackson Hole
LAS VEGAS - Cannae Holdings, Inc. (NYSE: CNNE), a diversified holding company, has announced its intention to allocate at least $460 million from its anticipated sale proceeds of Dun & Bradstreet (DNB) shares for capital return to shareholders and debt reduction. The company plans to use a substantial portion of these funds to repurchase its common stock and to cover future quarterly dividends, as well as to retire its existing debt.
The company’s repurchase initiative includes a $300 million buyback of its common stock, which is expected to commence shortly after the closing of the DNB transaction. This repurchase may include a tender offer. Additionally, Cannae Holdings aims to set aside $60 million of the proceeds to support future quarterly dividends for its shareholders.
Cannae Holdings also intends to repay the entirety of its $101 million outstanding margin loan, which is secured by DNB shares. The sale of DNB, Cannae’s largest investment with 69.1 million shares, is projected to yield $632 million in cash proceeds based on the transaction value. The closing of the DNB sale is anticipated in the third quarter of 2025, subject to standard closing conditions.
William P. Foley, II, CEO and Chairman of Cannae, expressed confidence in the strategic move, stating that the sale transaction would allow the company to capitalize on its largest asset and enhance shareholder value. The actions taken, according to Foley, are designed to reduce the discount to the company’s net asset value. This strategy appears timely, as InvestingPro’s Fair Value analysis indicates that CNNE is currently undervalued, trading at $18.52 per share, despite facing profitability challenges with negative earnings in the last twelve months.
The forward-looking statements included in the press release, however, are subject to various risks and uncertainties. These include potential changes in market conditions, general economic shifts, and the risk of unforeseen events that could impact the ability to complete the DNB transaction or affect the company’s financial and operational future.
Cannae Holdings has emphasized its role as an active manager of its investments, with no fixed time frame for holding or selling its business interests. The information in this article is based on a press release statement from Cannae Holdings, Inc.
In other recent news, Cannae Holdings reported a significant miss in its fourth-quarter 2024 earnings, with earnings per share (EPS) at -$0.74, diverging from the forecast of -$0.23. Despite this, the company’s revenue slightly exceeded expectations, reaching $110 million, surpassing the forecasted $103.07 million. The company has been actively rebalancing its portfolio, raising approximately $470 million through the sale of public portfolio company shares over the past year. This includes a notable exit from Dayforce, which yielded a return greater than five times the invested capital. Additionally, Cannae acquired a 20% stake in JANA Partners for $56 million and a 53% stake in the Watkins Company for $80 million, aiming to bolster future cash flows. The company has also initiated a quarterly cash dividend of $0.12 per common share and continued its share buyback efforts, repurchasing 9,672,540 shares in April 2024. Analysts from firms like Stephens and Oppenheimer have shown interest in Cannae’s strategic moves, particularly regarding capital allocation and potential monetization efforts. Cannae’s management remains focused on improving the performance of its portfolio companies and prioritizing share buybacks as a means of capital return to shareholders.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.