2023-07-31 10:57:34 ET
TriNet Group ( NYSE: TNET ) is planning to launch a combined $1B share buyback at $107 per share . Shares of the human capital management solutions provider gapped up 4.2% to $104.60 in Monday morning trading.
The firm is looking to launch a fixed price tender offer to repurchase about $640M of shares, which is expected to take effect on August 1, and expire on August 28.
In addition, the firm agreed on July 30, 2023, to buy back a minimum of ~$360M of shares from affiliates of its largest stockholder, Atairos Group.
Both transactions together will result in the repurchase of ~$1B in shares, or ~16% of TriNet's ( TNET ) outstanding shares, assuming the tender offer is fully subscribed.
"As a part of these buybacks, Atairos intends to maintain its current approximate pro rata percentage ownership, but has also agreed to sell additional shares if our tender offer is undersubscribed, potentially reducing their ownership to no less than 30%," TriNet President and CEO Burton M. Goldfield said in a statement.
As of July 27, Atairos owned some 36% of TriNet's ( TNET ) outstanding shares.
During TNET's Q2 earnings call last week, Goldfield announced that the company had been authorized by the board an incremental $1B to its already existing share buyback program.
More on TriNet Group:
- TriNet Q2 Non-GAAP EPS of $1.74, revenue of $1.21B
- TriNet Group: Good Firm Trading With A Premium
- TriNet jumps on report it's exploring a potential sale
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TriNet plans to launch combined $1B share buyback at $107 each