Summary
Union Pacific Corporation (UNP) announced on June 14, 2018, the establishment of accelerated share repurchase (ASR) programs totaling $3.6 billion with Morgan Stanley and JPMorgan Chase. This initiative is part of the company's broader plan, announced at its May 31, 2018 Investor Day, to repurchase approximately $20 billion of its shares over the next three years, including 2018. These ASRs demonstrate management's commitment to returning capital to shareholders and reflect confidence in the company's financial outlook.
Key Highlights
- 1Union Pacific (UNP) entered into accelerated share repurchase (ASR) programs valued at $3.6 billion.
- 2The ASRs are part of a larger capital return strategy aiming to repurchase $20 billion in shares over three years.
- 3Approximately 19.87 million shares are expected to be received on June 15, 2018, under the ASRs.
- 4The final number of shares repurchased will be based on the volume-weighted average stock price during the ASR term, less a discount.
- 5Final settlement of the ASRs is anticipated before the end of Q4 2018, with potential for early termination.
- 6These buyback programs are aligned with the company's financial guidance provided on May 31, 2018.
- 7The announcement underscores management's strategy to enhance shareholder value through significant capital allocation.