Papa John’s International Inc. PZZA said Thursday that Jefferey Smith, CEO of activist investor Starboard Value LP and chair of its own board has resigned effective March 1. The company named Christopher Coleman, who has been on the board since 2012, as his successor. The pizza chain also announced it has entered an agreement to buy back 2.2 million of its own shares owned by Starboard for $82.52 a share, or a 4% discount over the closing price on Wednesday. The company will fund the buyback with cash on hand and funds available under its revolving credit facility. The buyback leave about $90 million remaining under the company’s current authorization. The stock was down 2.3% premarket and has fallen 20.5% in the last 12 months, while the S&P 500 SPX has fallen 10%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
>>> Read the full story at MarketWatch.com - MarketPulse
