8-KOther Events

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Corporate Update (Mar 18, 2011)

Filed March 18, 2011For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) announced on March 17, 2011, a significant share repurchase program. The company has agreed to purchase approximately 4.5 million shares of its Class A common stock in a private transaction from funds advised by Franklin Advisers, Inc. The total cost for this repurchase is $207,450,000, with a per-share price of $46.10. This transaction is expected to close on March 22, 2011, and will be funded using existing cash and available liquidity. The repurchased shares will initially be held in treasury, with the company to decide later whether to cancel them or keep them as treasury stock. This move signals management's confidence in the company's value and may reduce the number of outstanding shares, potentially increasing earnings per share.

Key Highlights

  • 1Charter Communications to repurchase 4.5 million shares of Class A common stock.
  • 2The private transaction is valued at $207,450,000.
  • 3The per-share purchase price is $46.10.
  • 4The transaction is expected to close on March 22, 2011.
  • 5Funding for the repurchase will come from existing cash on hand and available liquidity.
  • 6Repurchased shares will be held as treasury stock, with future cancellation undecided.
  • 7The seller is identified as funds advised by Franklin Advisers, Inc.

Frequently Asked Questions

This Form 8-K filing is to report a material event: Charter Communications' agreement to purchase approximately 4.5 million shares of its Class A common stock in a private transaction.

The repurchase reduces the number of outstanding shares, which can potentially increase earnings per share (EPS) and may signal management's belief that the company's stock is undervalued. The shares will be held in treasury, offering flexibility for future use.

The company plans to fund the $207,450,000 transaction using its existing cash on hand and available liquidity.

Treasury stock are shares that the company has repurchased. They are not considered outstanding for voting or dividend purposes. The company will later decide whether to formally cancel these shares or keep them for potential future corporate actions, such as employee stock options or acquisitions.