AOL, an Internet media firm announced that it will buys back $600M of stock issued one-time cash classified of $5.15 per share.
On this official press release, “Today’s announcement underscores AOL’s commitment to delivering value for our shareholders,” said AOL Chairman and CEO, Tim Armstrong.
“AOL remains committed to creating and unlocking value for all shareholders through smart execution and disciplined management of our asset portfolio.”
Company will pay the $600 million at the beginning of the ASR Agreement and expects to receive shares throughout the remainder of the year and a substantial majority of the shares underlying the transaction before year-end, including approximately 4 million shares that Barclays will deliver to AOL on August 30.
The specific number of shares AOL will ultimately repurchase under the ASR Agreement will be based on a discount to the volume-weighted average share price of AOL common stock during the agreement period adjusted down by $5.15 for the payment of the special dividend.
The purchase price will also be subject to floor and cap provisions establishing a minimum and maximum number of repurchased shares.