Emmis Communications

(EMMS) - Get Report

said Monday that its board of directors authorized its management to take the necessary steps to enable the board to declare a special cash dividend of $4 a share payable pro rata to all holders of the company's common stock.

The special dividend is expected to be paid before the end of November, assuming certain conditions are satisfied.

"The Board decided that this special dividend -- the first-ever for Emmis -- would reward all of its common shareholders while at the same time establish an appropriate capital structure for Emmis to achieve its strategies," the Indianapolis-based firm said. "This action demonstrates the Board's confidence in Emmis' financial discipline, while allowing all shareholders to benefit from overachieving the expected sale price for our television stations. Coupled with last year's Dutch auction tender, we will have returned almost $550 million to shareholders in the last eighteen months."

Currently, Emmis has about 37.3 million shares outstanding, including Class A and Class B common stock, the company added.

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