Masco Corp. has entered into an accelerated share repurchase agreement with Royal Bank of Canada to repurchase $400 million of Masco’s common stock.
This agreement is part of Masco’s existing share repurchase authorization of $2 billion which was announced on Sept. 17.
Under the ASR agreement, Masco will receive initial delivery of 7.3 million shares on Nov. 26, representing approximately 85 percent of the number of shares of common stock initially underlying the ASR agreement, based on the closing price of Masco’s common stock of $46.42 on Nov. 25.
The final number of shares to be repurchased will be based on Masco’s volume-weighted average price during the term of the transaction, less a discount, and is expected to be completed no later than Feb. 12, 2020.
Masco is a global company which designs, manufactures and distributes branded home improvement and building products.