RICHMOND - Altria Group , Inc. (NYSE: NYSE:MO), a leading tobacco company, announced on Monday an accelerated share repurchase (ASR) agreement to buy back $2.4 billion of its common stock. The transaction is part of an expanded $3.4 billion repurchase program slated for completion by December 31, 2024.
The ASR agreements were made with Morgan Stanley & Co (NYSE:MS). LLC and Goldman Sachs & Co (NYSE:GS). LLC on March 15, 2024. As per the agreements, Altria received an initial delivery of approximately 85% of the shares to be repurchased, based on the closing price of its stock on the day the agreement was executed.
The remaining shares are expected to be delivered by the end of the second quarter of 2024, with the total number of shares purchased depending on the volume-weighted average prices of Altria's stock, less a discount.
Altria also closed the sale of 35 million shares of Anheuser-Busch InBev SA/NV (ABI) (NYSE: BUD) through a global secondary offering at $61.50 per American depositary share (ADS). The offering included a public offering in the U.S., a concurrent private placement in Europe and the U.K., and an offering in other countries.
ABI additionally repurchased $200 million of its shares directly from Altria. With this transaction, Altria has committed to a 180-day lockup period for its remaining ABI shares.
The share repurchase moves and the ABI share sale reflect Altria's strategic financial management, although the company cautions that share repurchases are subject to market conditions and the discretion of its Board of Directors.
The press release also contains forward-looking statements that involve risks and uncertainties, including the number of shares to be repurchased and the timing of the transactions' final settlement.
These announcements are based on a press release statement and are subject to the customary risks associated with financial market activities. The repurchase program and the sale of ABI shares are part of Altria's ongoing efforts to manage its investment portfolio and return value to its shareholders.
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