Valvoline announced that it has commenced a modified “Dutch auction” tender offer to repurchase up to $1 billion in value of shares of its common stock at a price not greater than $40 per share nor less than $35 per share.
If the offer is fully subscribed, the number of shares to be purchased in the offer represents approximately 15.08% to 17.23% of Valvoline’s issued and outstanding shares as of May 5, 2023, depending on the purchase price payable for those shares pursuant to the offer. At the maximum purchase price of $40 per share, the offer would represent a premium of approximately 4% to the NYSE closing price of the shares on May 10, 2023 of $38.45 per share.
On November 10, 2022, the board of directors of Valvoline approved a share repurchase authorization of $1.6 billion. As of May 5, 2023, the remaining capacity under the 2022 Share Repurchase Authorization was approximately $1.37 billion. The repurchase of up to $1 billion of shares in the offer is being made pursuant to the 2022 Share Repurchase Authorization.
The company intends to pay for the purchase of shares in the offer with cash on hand from the net proceeds received from the sale of its Global Products business.
