Scholastic to Buy Back $75 Million of Its Shares
The Scholastic board of directors has approved the repurchase of up to $75 million of the publisher’s common stock through a modified Dutch auction. Scholastic has set the buy-back price at between $35 to $40 per share.
Scholastic’s shares were selling at $33.63 per share Monday morning. The offer opens tomorrow, October 25, and closes November 22. Under a Dutch auction, shareholders decide how many shares they will tender, if any, and the price within the stated range at which they will tender their shares.
"This decision to purchase approximately 6% of our outstanding shares of common stock represents both a major investment in our own stock at what we believe are very attractive prices and a first step as we review Scholastic's capital allocation framework in light of our improved margin profile and long-term free cash flow outlook," Peter Warwick, president and CEO of Scholastic, said in a statement.
