Alliance Data Systems Corp., a provider of data-driven marketing and loyalty services, has launched a "modified Dutch Auction" tender offer to buy back up to $750 million of its stock at a price between $144 and $162 a share.
In a Dutch Auction, shareholders can offer to sell back all or a portion of their shares attached a stated price in the range. The company then will buy the shares at the lowest price that allows it to reach the $750 million goal, with the company paying the same price to all investors who tendered at or below the determined price.
Alliance Data's stock closed at $158 on the New York Stock Exchange on July 18, the last full trading day before the commencement of the tender offer. The tender will expire at midnight on August 15, unless extended or terminated.
In the statement, Alliance said the repurchase is consistent with its long-term goal of allocating capital to maximize value for its stockholders and other stakeholders. The offer also allows the Company to return value to its stockholders following the sale of its Epsilon business to Publicis Groupe, S.A. for $4.4 billion. The offer also allows the company to accelerate its share repurchase program faster than possible through open market repurchases.
The offer is not contingent upon a minimum number of shares being tendered.