Summary
Aflac Incorporated announced on August 26, 2008, a significant share repurchase agreement with Goldman, Sachs & Co. (GS&Co.) valued at $825 million. This agreement, effective until February 18, 2009, aims to repurchase a variable number of Aflac's shares, with specific deliveries of 6.0 million shares on December 23, 2008, and 5.0 million shares on January 5, 2009. The final settlement will be determined by the volume-weighted average price of Aflac's common shares during a specified period, allowing for potential additional share delivery or cash/share remittance by Aflac. This repurchase is part of Aflac's previously authorized share buyback programs, with 43.1 million shares available for purchase as of the announcement date. The repurchased shares will be held in treasury. The company funded this transaction using its internal capital, indicating a strong financial position and a commitment to returning value to shareholders. Investors should monitor the terms of the final settlement, as it could impact the total number of shares repurchased and the ultimate cost to Aflac.
Key Highlights
- 1Aflac entered into an $825 million share repurchase agreement with Goldman, Sachs & Co. (GS&Co.) on August 26, 2008.
- 2The agreement is set to terminate on February 18, 2009.
- 3GS&Co. is scheduled to deliver 6.0 million shares on December 23, 2008, and 5.0 million shares on January 5, 2009.
- 4The final settlement will be based on the volume-weighted average price (VWAP) of Aflac's common shares during a specified period.
- 5Aflac has 43.1 million shares available under existing repurchase authorizations.
- 6The repurchase program is funded by Aflac's internal capital.
- 7The repurchased shares will be held in treasury.