Satellite radio provider SiriusXM is to repurchase US$500m of common stock from its controlling shareholder Liberty Media as part of an enlarged share repurchase programme.
The move is the first time Liberty has participated in Sirius’ ongoing share…
Satellite radio provider SiriusXM is to repurchase US$500m of common stock from its controlling shareholder Liberty Media as part of an enlarged share repurchase programme.
The move is the first time Liberty has participated in Sirius’ ongoing share buyback strategy and post transaction will see the media group hold a 52% stake.
The shares will be purchased in three instalments, of which US$130m will be repurchased in November 2013, US$270m in January 2014 and US$100m in April 2014. The purchases may be accelerated under certain circumstances.
Sirius will pay a per share price equal to a 1.5% discount to the daily volume weighted average price of the stock during the ten-day period beginning 24 October. There is also a price range of US$3.64 to US$4.18.
The repurchase is part of a new US$2bn share buyback program that the Sirius board has approved.
At the end of 2012, Sirius announced both a US$2bn share buyback plan and US$325m special dividend as it sought to return capital to its investors. To date, the company has repurchased 476,545,601 shares of common stock worth approximately US$1.6bn.
The purchase of US$400m worth of Liberty’s shares marks the completion of that share repurchase programme and the board has deemed that there is enough scope to initiate a new US$2bn buyback plan. The first US$100m of that will be through the Liberty repurchase agreement.
