Bristol Myers Squibb Enters Into $5 Billion Aggregate Accelerated Share Repurchase Agreements

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Bristol Myers Squibb, on Wednesday, announced that it has entered into accelerated share repurchase (ASR) transactions under agreements with Morgan Stanley, Barclays Bank PLC, Citibank, and JPMorgan Chase Bank to repurchase $5 billion of Bristol Myers Squibb common stock.

The Pharma major expects to fund the repurchases with cash on hand. The company will receive approximately 85 percent of the shares, under the ASR transactions. As per the ASR Agreements, the ASR transactions will be completed under a previously announced $15 billion board-authorized multi-year share repurchase program. 

The company, under this program, will have approximately $10.2 billion of remaining share repurchase authorization after giving effect to the ASR transactions. It is anticipated by the company that the ASR transactions will be settled during the second and third quarters of 2022.

The total number of shares ultimately repurchased under the ASR transactions will be determined upon final settlement and will be based on a discount to the volume-weighted average price of the firm’s common stock during the terms of the ASR transactions.

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