Synovus shareholders approve stock split
By Natalie Fultz
COLUMBUS – Back in 2008, Synovus nearly hit rock bottom. As a result, they began selling shares for next to nothing to get out of the financial crisis they were in.
But now, the tide has turned. The books are consistently showing gains. So, Synovus is ready to venture into reverse stock split, selling less shares, but at a higher price.
“A three dollar stock would become a $21 stock, so there’s no economic change in the value of your investment. It’s just a reset of the price,” Kessel Stelling, Synovus chair and CEO says.
Which leaves many questioning why Synovus is interested in a 1-7 reverse stock split?
“Some investors cannot invest in a stock that trades at less than $5 a share, and as any company, we want to make sure we appeal to the broadest range of investors that we can,” Stelling says.
As for risks, well, there are some…
“Value in a stock is based on economic conditions, which we can’t control in many cases, and based on our performance and how much money we earn. So, same risk as every other company has. There’s no smoke and mirrors at all. It’s a sign though, I hope, of a stronger company,” Stelling says.
This comes on the heels of the the nearly one billion dollars Synovus paid back to the Troubled Asset Relief Program. Civil rights leader Reverend Jesse Jackson, weighed in on today’s stock proposal at the meeting.
“Some banks just got bigger and bigger and richer and richer, but Synovus has been different. It has reinvested in the flowers that it robbed,” Rev. Jackson says.
Over ninety percent of shareholders voted in favor of the change. The reverse split stock could go in effect as early as today.