Ashland Inc. enters into $500 million accelerated share repurchase
November 17 2015 - 7:52PM
November 17, 2015
COVINGTON, Ky. - Ashland Inc. (NYSE: ASH) today
announced that it has entered into an uncollared accelerated share
repurchase (ASR) agreement with Goldman Sachs & Co. to
repurchase an aggregate of $500 million of Ashland's common stock.
In April 2015, Ashland's board of directors approved a $1 billion
share repurchase authorization expiring December 2017.
Under the ASR agreement, Ashland has agreed to
repurchase an aggregate of $500 million of its common stock from
Goldman Sachs, with an initial delivery of approximately 3.9
million shares. The ASR Agreement is scheduled to terminate no
later than May 2016 but may be terminated early in certain
circumstances, in whole or in part. Goldman Sachs may be required
to deliver additional shares of common stock to Ashland, or under
certain circumstances, Ashland may be required to deliver shares of
common stock or to make a cash payment, at its election, to Goldman
Sachs.
About Ashland
Ashland Inc. (NYSE: ASH) is a global leader in providing specialty
chemical solutions to customers in a wide range of consumer and
industrial markets, including adhesives, architectural coatings,
automotive, construction, energy, food and beverage, personal care
and pharmaceutical. Through our three business units - Ashland
Specialty Ingredients, Ashland Performance Materials and Valvoline
- we use good chemistry to make great things happen for customers
in more than 100 countries. Visit ashland.com to learn more.
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C-ASH
Forward-Looking Statements
This news release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Ashland has identified
some of these forward-looking statements with words such as
"anticipates," "believes," "expects," "estimates," "is likely,"
"predicts," "projects," "forecasts," "may," "will," "should" and
"intends" and the negative of these words or other comparable
terminology. In addition, Ashland may from time to time make
forward-looking statements in its annual report, quarterly reports
and other filings with the Securities and Exchange Commission
(SEC), news releases and other written and oral communications.
These forward-looking statements are based on Ashland's
expectations and assumptions, as of the date such statements are
made, regarding Ashland's future operating performance and
financial condition, including the proposed separation of its
specialty chemicals and Valvoline businesses, the expected
timetable for completing the separation, the future financial and
operating performance of each company, strategic and competitive
advantages of each company, the leadership of each company, and
future opportunities for each company, as well as the economy and
other future events or circumstances. Ashland's expectations and
assumptions include, without limitation, internal forecasts and
analyses of current and future market conditions and trends,
management plans and strategies, operating efficiencies and
economic conditions (such as prices, supply and demand, cost of raw
materials, and the ability to recover raw-material cost increases
through price increases), and risks and uncertainties associated
with the following: the possibility that the proposed separation
will not be consummated within the anticipated time period or at
all, including as the result of regulatory market or other factors;
the potential for disruption to Ashland's business in connection
with the proposed separation; the potential that the new Ashland
and Valvoline do not realize all of the expected benefits of the
separation, Ashland's substantial indebtedness (including the
possibility that such indebtedness and related restrictive
covenants may adversely affect Ashland's future cash flows, results
of operations, financial condition and its ability to repay debt);
the impact of acquisitions and/or divestitures Ashland has made or
may make (including the possibility that Ashland may not realize
the anticipated benefits from such transactions); the global
restructuring program (including the possibility that Ashland may
not realize the anticipated revenue and earnings growth, cost
reductions and other expected benefits from the program); Ashland's
ability to generate sufficient cash to finance its stock repurchase
plans; severe weather, natural disasters, and legal proceedings and
claims (including environmental and asbestos matters). Various
risks and uncertainties may cause actual results to differ
materially from those stated, projected or implied by any
forward-looking statements, including, without limitation, risks
and uncertainties affecting Ashland that are described in its most
recent Form 10-K (including Item 1A Risk Factors) filed with the
SEC, which is available on Ashland's website at
http://investor.ashland.com or on the SEC's website at
http://www.sec.gov. Ashland believes its expectations and
assumptions are reasonable, but there can be no assurance that the
expectations reflected herein will be achieved. Unless legally
required, Ashland undertakes no obligation to update any
forward-looking statements made in this news release whether as
result of new information, future event or otherwise.
FOR FURTHER
INFORMATION:
Investor Relations:
Seth A.
Mrozek
+1 (859) 815-3527
samrozek@ashland.com
Media Relations:
Gary
Rhodes
+1 (859)
815-3047
glrhodes@ashland.com
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Ashland Inc. via Globenewswire
HUG#1967565
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