HARTSVILLE, S.C. (News release) -- Sonoco announced an agreement to repurchase $150 million of its outstanding common shares in an accelerated share repurchase ("ASR") transaction with Wells Fargo Bank, N.A., using available cash on hand.
Under the ASR agreement, Sonoco will pay $150 million in exchange for an initial delivery of approximately 1.75 million shares. The final number of shares to be repurchased under the ASR will be based on the Company's volume-weighted average share price during the repurchase period, less a discount and subject to adjustments. The final settlement of the ASR transaction is expected to occur no later than the third quarter of 2021.
According to Howard Coker, President and CEO, the ASR demonstrates Sonoco's strong financial position and illustrates its focus on a balanced capital allocation strategy that includes investing in the Company's core Consumer and Industrial businesses while consistently returning cash to shareholders.
The ASR is being undertaken under the recently announced $350 million share repurchase authorization approved by the Board of Directors on April 20, 2021. This authorization restored and replaced the Company's prior residual repurchase authorizations and allows the Company to repurchase shares through the open market, privately negotiated transactions or other programs. The timing and actual number of shares repurchased under the share repurchase authorization will depend on a variety of factors including price, corporate and regulatory requirements, and other market conditions.