Monsanto Company announces new $3 billion accelerated share repurchase

Monsanto Company announced that it has entered into accelerated share repurchase (ASR) agreements with Citibank, N.A. and JPMorgan Chase Bank, N.A. to repurchase an aggregate of $3 billion of the company’s common stock. Today’s ASR is part of Monsanto’s $10 billion share repurchase authorization announced in June 2014.

“With the successful completion of our previous $6 billion accelerated share buyback in fiscal year 2015, we’ve repurchased more than 10 percent of our shares outstanding since June 2014,” said Pierre Courduroux, Senior Vice President and Chief Financial Officer for Monsanto Company. “Today’s new $3 billion accelerated share repurchase agreements demonstrate our continued commitment to creating and returning value to our shareowners, as we progress toward our targeted capital structure.”

Under the terms of the ASR agreements, Monsanto will repurchase $3 billion of its common stock from Citibank, N.A. and JPMorgan Chase Bank, N.A. with an aggregate initial delivery of approximately 28.4 million shares based on current market prices. The final number of shares to be repurchased will be based on Monsanto’s volume-weighted average stock price during the terms of the transactions, less a discount. The ASR is expected to be completed sometime in the next six months. The company is funding the ASR with proceeds from issuance of commercial paper and cash on hand.