Summary
CVS Health Corporation (CVS) has filed an 8-K report detailing the commencement of a significant share repurchase program. The company's Board of Directors authorized a new program for up to $6.0 billion in common stock repurchases, effective immediately upon approval on September 19, 2012. This program allows for flexibility in execution, including open market purchases, privately negotiated transactions, and accelerated share repurchases. As an immediate action under this new authorization, CVS Caremark entered into an accelerated share repurchase (ASR) transaction with Barclays Bank PLC for $1.2 billion. This ASR utilized $1.0 billion from the new 2012 Repurchase Program and $200 million from a previously authorized 2011 program, effectively completing the 2011 program. The remaining $5.0 billion under the 2012 Repurchase Program is subject to market conditions and other factors, with no guarantee on timing or price.
Key Highlights
- 1CVS Health has authorized a new share repurchase program of up to $6.0 billion.
- 2The new program commenced immediately on September 19, 2012.
- 3The company entered into an Accelerated Share Repurchase (ASR) transaction valued at $1.2 billion with Barclays Bank PLC.
- 4The ASR transaction used $1.0 billion from the new 2012 program and $200 million from the prior 2011 program, concluding the 2011 program.
- 5The ASR transaction is expected to last approximately three months.
- 6The remaining $5.0 billion of the 2012 Repurchase Program has no fixed timing or price for execution.
- 7Repurchases can be conducted through various methods, including open market, private negotiations, and derivative transactions.