Monster Beverage Commences Modified Dutch Auction Tender To Buy Back Shares For $2.0 Billion

Monster Beverage Corporation MNST disclosed that it started a modified "Dutch auction" tender offer to buy back shares of its common stock for cash for a maximum of $2.0 billion. According to the company, the price per share should not less than $142.00 and not higher than $160.00.

Monster Beverage said that the tender offer, which would be funded with cash on hand, would expire on June 8 at New York City Time unless extended or terminated earlier by it. The company indicated that the shareholders might tender all or a part of their holdings at a price specified.

Alternatively, the company's shareholders may tender shares without specifying a purchase price. In such a case, their shares would be purchased at the purchase price determined in accordance with the tender offer.

The company said that when the tender offer expires, it would determine the lowest price per share within the range specified that would enable it to buy back the maximum number of shares of its common stock. Monster said that all shares accepted in the tender offer would be purchased at the same price, which might be higher or lower than the market price immediately before or during the tender offer process.

The food and beverage firm said if the tender offer was fully subscribed, then shares worth $2.0 billion would be purchased. That would represent between 6.2 percent and 6.9 percent of its issued and outstanding shares as of April 15, 2016.

The dealer managers to the tender offer were Barclays Capital Inc. and Goldman, Sachs & Co while Innisfree M&A Incorporated was serving as the information agent, and American Stock Transfer & Trust Company, LLC was acting as the depositary.

The stock traded 2.16 percent in the pre-market on Tuesday.