Ball Corporation announced an agreement to repurchase approximately $250m of its outstanding common stock in a privately negotiated, accelerated stock repurchase transaction with Citibank, using cash on hand and available borrowings.
Subject to certain conditions, the transaction will commence today and reduce Ball’s outstanding common stock by a total of approximately 4 million shares. Following the completion of today’s transaction, 45 million shares remain available for repurchase under the company’s existing authorization.
“This share buyback, which is part of our previously announced planned purchases for the year, is consistent with our balanced capital deployment strategy that includes returning value to shareholders in the form of share buybacks and dividends and investing in EVA-generating growth projects,” said Scott C. Morrison, senior vice president and chief financial officer.
The shares are subject to a market price adjustment provision at the conclusion of the accelerated stock repurchase transaction, which may require a settlement to be made by Ball, or to Ball, based generally on the volume weighted average trading price of the company’s shares over an agreed upon period of time.
Source: Company Press Release