Summary
Allstate Corp. (ALL) announced on June 9, 2017, that it has entered into an accelerated share repurchase (ASR) agreement with Goldman Sachs & Co. LLC to buy back $250 million of its outstanding common stock. The company will receive the majority of these shares immediately, with Goldman Sachs expected to acquire them in the market by August 17, 2017. This ASR is a component of Allstate's broader $1.5 billion share repurchase program authorized in May 2016.
Key Highlights
- 1Allstate enters into a $250 million accelerated share repurchase agreement with Goldman Sachs.
- 2Majority of shares repurchased under the ASR are expected to be received by Allstate immediately.
- 3Goldman Sachs is expected to purchase the shares in the market no later than August 17, 2017.
- 4The ASR is part of Allstate's previously announced $1.5 billion share repurchase program initiated on May 4, 2016.
- 5As of June 9, 2017, Allstate had already repurchased 17.1 million shares for $1.2 billion under the program.
- 6Final purchase price and share count will be determined based on the average daily volume-weighted average prices during Goldman Sachs' purchase period.
- 7All repurchased shares will be held in treasury.
Frequently Asked Questions
The main purpose is to announce Allstate's entry into an accelerated share repurchase agreement to buy back $250 million of its common stock, as part of its ongoing share repurchase program.
Allstate expects to receive the majority of the shares immediately at the inception of the agreement. The final number of shares will be determined later based on market purchase prices.
As of June 9, 2017, Allstate had already repurchased $1.2 billion worth of shares, representing 17.1 million shares. This $250 million ASR will further contribute to the total $1.5 billion program.
The final price per share will be based on the average of the daily volume-weighted average prices of Allstate's common stock during the period Goldman Sachs makes its market purchases.