By Colin Kellaher
LONDON (Dow Jones) — Theravance Biopharma Inc plans to reduce its free float and, among other things, to buy out its second-largest shareholder GSK. In total, the biopharmaceutical company is spending $250 million to buy back its own shares.
Theravance Biopharma has approximately 76.4 million shares outstanding and a market capitalization of nearly $770 million. British pharmaceutical group GSK plc is the company’s second largest shareholder with a 12.6 percent stake, according to Factset data. The holding includes approximately 9.6 million shares, which Theravance GSK is buying at $9.75 a share, a discount of 3 percent from Friday’s closing price of $10.07.
Theravance also announced a “Dutch auction” to buy back approximately $95 million worth of stock. This is a form of auction with falling prices: the seller makes an offer to sell and gradually lowers it.
In a third step, further shares worth about 60 million dollars are to be acquired on the open market. The buyback program is expected to be completed by the end of next year.
Contact the author: [email protected]
DJG/DJN/sha/err
(END) Dow Jones Newswires
September 19, 2022 06:54 ET (10:54 GMT)
Leverage must be between 2 and 20
No data