Peabody has announced that it has signed a definitive agreement to repurchase US$300 million of Peabody common stock directly from entities advised by Elliott Management at a price of US$41.82 per share, representing a 1.7% discount from the closing price on 13 August 2018.
The repurchase represents 5.9% of the company's shares outstanding and is being made under Peabody's $1 billion authorised repurchase programme. Repurchases now total US$875 million since the company's shareholder return programme was initiated in August 2017. Closing is expected on or about 21 August 2018, subject to customary conditions.
"Peabody continues to generate substantial earnings, convert those earnings into cash in significant quantities and return cash to shareholders through a robust and expanded capital returns programme," said Peabody President and Chief Executive Officer Glenn Kellow. "This repurchase represents another key milestone in our shareholder returns, and the buyback has the benefits of being accretive to shareholders while maintaining our strong financial position."
In the past month, Peabody has increased its dividend per share, completed a bond indenture amendment process to accommodate greater shareholder returns, and brought its total shares repurchased in the past year to 22.8 million shares, representing nearly 17% of fully converted shares outstanding in August 2017.
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