Kroger Company KR shares are relatively unchanged in the premarket session on Friday.
The grocery giant has entered into Accelerated Share Repurchase agreements with Wells Fargo Bank and Citibank to repurchase a total of $5.0 billion in shares of its common stock.
This buyback is part of Kroger’s broader $7.5 billion share repurchase authorization.
Under the terms of the ASR agreements, Kroger will pay $5.0 billion to the dealers and expects to receive an initial delivery of approximately 65.6 million shares on December 20, 2024. This represents about 80% of the total shares that could be purchased with the $5.0 billion, based on the closing price of Kroger shares on December 19, 2024.
The final number of shares repurchased will depend on the volume-weighted average prices of Kroger’s stock during the repurchase period, with adjustments as per the ASR agreements.
Kroger has also noted that, in addition to the share repurchase program, it has $2.5 billion in capacity remaining under its share repurchase authorization, giving the company flexibility for future repurchases.
The final settlement for the agreements is expected by the third fiscal quarter of Kroger’s fiscal 2025.
According to Benzinga Pro, KR stock has gained over 35% in the past year. Investors can gain exposure to the stock via Invesco Food & Beverage ETF PBJ.
Price Action: KR shares are trading higher by 0.07% to $61.00 premarket at last check Friday.
Photo by Kevin Chen Images via Shutterstock.
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