Summary
Visa Inc. (V) filed an 8-K on October 12, 2010, detailing a significant event related to its retrospective responsibility plan and share repurchase activities. The company deposited $800 million into a litigation escrow account on October 8, 2010, which effectively acted as a repurchase of approximately 10.99 million shares of Class A common stock on an as-converted basis. This action, governed by the company's charter and calculated based on a 13-day volume-weighted average price, adjusted the conversion rate for Class B common stock. Furthermore, Visa announced the completion of its $1 billion share repurchase program authorized in October 2009. In the fourth quarter of fiscal year 2010, the company bought back 4.6 million shares of Class A common stock, contributing to a total of 12.9 million shares repurchased under the full plan. These actions reflect a commitment to returning capital to shareholders and managing its share structure.
Key Highlights
- 1Visa deposited $800 million into its litigation escrow account on October 8, 2010, as part of its retrospective responsibility plan.
- 2This deposit effectively resulted in the repurchase of approximately 10,997,507 shares of Class A common stock on an as-converted basis.
- 3The effective repurchase price was approximately $72.74 per share, based on a 13-day volume-weighted average price.
- 4The conversion rate for Visa's Class B common stock was reduced from 0.5550 to 0.5102 as a result of the deposit.
- 5Visa announced the completion of its $1 billion share repurchase program authorized in October 2009.
- 6In Q4 FY2010, 4.6 million shares of Class A common stock were repurchased at an average price of $72.29.
- 7Under the full $1 billion plan, a total of 12.9 million shares of Class A common stock were repurchased.