White Mountains in potential $438m share buyback
White Mountains Insurance Group is launching a "modified Dutch auction" self-tender offer to purchase 500,000 of its common shares at a purchase price of not greater than $875 or less than $825 per share, net to the seller in cash.
White Mountains' common shares closed on the New York Stock Exchange at $806.17 per share on April 9, 2018.
In case of the purchase of 500,000 shares for the maximum price of $875 per share, the programme would total $437.5 million while the minimum offered purchase price would cost a total of $412.5 million.
The tender offer is expected to commence on April 10, 2018 and expire at 12:00 midnight, New York City time, at the end of the day on May 7, 2018, unless extended.
A "modified Dutch auction" self-tender offer allows shareholders to indicate how many shares and at what price within the company's specified range they wish to tender their shares. Based on the number of shares tendered and the prices specified by the tendering shareholders, the company will determine the lowest price per share within the range that will enable it to purchase 500,000 shares, or such lesser number of shares that are properly tendered and not properly withdrawn.
All shares purchased by the company in the tender offer will be acquired at the same price regardless of whether the shareholder tendered at a lower price. The company will not purchase shares below a price stipulated by a shareholder, and in some cases, may actually purchase shares at a price above a shareholder's indication under the terms of the tender offer.
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