Summary
HCA Holdings, Inc. (HCA) announced on May 10, 2016, that it entered into a Share Repurchase Agreement to buy back approximately 9.36 million shares of its common stock from affiliates of Kohlberg Kravis Roberts & Co. (KKR). This significant share repurchase is being executed at a price of $80.12 per share, which represents the closing price on May 10, 2016, less a 1% discount. The transaction is a notable use of HCA's existing $3.0 billion share repurchase program, authorized in October 2015. Following this repurchase, the company will have utilized $2.09 billion of the authorized program. This action signals management's confidence in the company's valuation and its commitment to returning capital to shareholders, potentially boosting earnings per share by reducing the outstanding share count.
Key Highlights
- 1HCA Holdings, Inc. to repurchase 9,360,958 shares of common stock from KKR affiliates.
- 2The repurchase price is $80.12 per share, based on the May 10, 2016 closing price less a 1% discount.
- 3This transaction is part of HCA's existing $3.0 billion share repurchase program approved in October 2015.
- 4Following this repurchase, $2.09 billion of the program will have been utilized.
- 5The repurchase involves shares beneficially owned by affiliates of Kohlberg Kravis Roberts & Co. (KKR).
- 6The event date of the agreement was May 10, 2016.