Altaba Commences Tender Offer To Purchase Its Common Stock - Quick Facts

(RTTNews) - Altaba Inc. (AABA) announced the commencement of a tender offer to purchase up to 195 million issued and outstanding shares of its common stock at a purchase price per share equal to (A) 0.35 American Depositary Shares of Alibaba Group Holding Limited and (B) an amount in cash equal to the Alibaba VWAP multiplied by 0.05, less applicable withholding taxes and without interest. The company noted that Alibaba VWAP means the daily volume-weighted average price for an Alibaba ADS, on the second trading day prior to the expiration date. The tender offer will expire on July 11, 2018. Alibaba ADSs are listed on the NYSE and trade under the symbol, BABA.

Altaba will announce the Alibaba VWAP and the cash portion of the offer consideration payable for shares pursuant to the tender offer no later than the second trading day prior to the expiration date (July 9, 2018 based on the current expiration date).

Thomas McInerney, CEO of Altaba, said, "This accretive transaction is a natural next step toward realizing Altaba's investment objective: the reduction of the discount to net asset value at which our shares trade. If fully subscribed, based on current market values, this transaction will bring our total capital return over the past year to more than $25 billion. Our board and management determined that this tender offer represents the fastest and most efficient way to return a substantial amount of capital to our shareholders now. We will continue to evaluate additional actions and transactions that we can pursue in the months ahead."