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Allergan announces stock repurchase plan
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Allergan plc announced in a press release that its board of directors has authorized a share repurchase program of up to $10 billion of the company's common stock.
Allergan reported that it expects to make $4 billion to $5 billion in open market repurchases during the next four to six months, “subject to favorable market conditions,” according to the release. The share repurchase program is “pending the completion of and receipt of proceeds from the divestiture of Allergan's Global Generics business to Teva, expected to close by the end of June 2016,” Allergan reported.
Allergan will continue extending the program, including implementation of an increase in distribute reserves to be approved by shareholders, if favorable market conditions persist.
"We believe there is no greater investment than Allergan stock, given our powerful growth prospects," Brent Saunders, CEO and president of Allergan, stated in the release. "As we think about our capital deployment options post the close of the Teva transaction, in addition to the stock repurchase program, we will have the ability to pay down debt to maintain our investment grade credit ratings and preserve significant firepower to invest for growth."
Reference: www.allergan.com