Home Depot completes tender offer
Home Depot has reported the preliminary results of its tender offer, which closed on Aug. 31 with the repurchase of 289.6 million shares at a price of $37 per share. Excluding fees and expenses, the stock buyback will cost approximately $10.7 billion.
Most of the money -- about $8 billion -- will come from the proceeds of the sale of HD Supply, according to spokeswoman Paula Drake. Another $2.7 billion will be paid in cash, she said.
Originally, Home Depot announced it wanted to spend $22.5 billion on its recapitalization plan, offering $39 to $44 per share. But the company cut its offer price in mid-August to $37 to $42.
Drake said the company will continue buying back shares but gave no specific timeline for doing so. The 290 million shares being repurchased in the tender offer represent approximately 14.6 percent of the company’s outstanding stock, according to a filing with the Securities and Exchange Commission.