NEW YORK--(BUSINESS WIRE)--
Altaba Inc. ("Altaba" or the "Company") (NASDAQ:AABA) announced today
the preliminary results of its modified "Dutch auction" self-tender
offer to purchase up to $3.0 billion of shares of its common stock,
which expired at 11:59 p.m., New York City time, on June 16, 2017.
Based on the preliminary count by Computershare Trust Company, N.A., the
depositary for the tender offer, a total of 64,578,083 shares of the
Company's common stock were properly tendered and not properly withdrawn
at or below the expected purchase price of $53.20 per share, including
47,020,366 shares that were tendered by notice of guaranteed delivery.
In accordance with the terms and conditions of the tender offer and
based on the preliminary count by the depositary, the Company expects to
accept for payment, at a purchase price of $53.20, all of the 64,578,083
shares properly tendered at or below the purchase price and not properly
withdrawn before the expiration date, at an aggregate cost of
approximately $3.4 billion, excluding fees and expenses relating to the
tender offer. These shares represent approximately 6.7% of the Company's
issued and outstanding shares as of June 16, 2017. The shares expected
to be purchased include 56,390,977 shares for an aggregate purchase
price of up to $3.0 billion and an additional 8,187,106 shares that the
Company has elected to purchase pursuant to its right to accept for
payment up to an additional 2% of the Company's issued and outstanding
shares without extending the tender offer.
The Company determined the expected purchase price of $53.20 by
multiplying 0.388, the lowest multiple within the Company's specified
range at which shares were tendered or were deemed to have been tendered
in the tender offer, that when multiplied by the previously announced
"Alibaba VWAP" of $137.1017, would enable the Company to purchase the
maximum number of shares of the Company's common stock properly tendered
and not properly withdrawn having an aggregate purchase price not
exceeding $3,000,000,000. The Company is purchasing an additional 0.85%
of the Company's issued and outstanding shares that were tendered at the
expected purchase price, pursuant to its right to accept for payment up
to an additional 2% of the Company's issued and outstanding shares
without extending the tender offer.
The number of shares expected to be purchased, the expected purchase
price per share and expected total purchase price are preliminary and
subject to change, including to the extent shares tendered through
notice of guaranteed delivery are not delivered within the prescribed
three trading day settlement period. The final number of shares to be
purchased, the final per share and total purchase prices and the
proration factor (if proration becomes applicable as a result of a
change in the final per share purchase price) will be announced
following the expiration of the guaranteed delivery period and the
completion by the depositary of the confirmation process. Payment for
the shares accepted for purchase pursuant to the tender offer, and the
return of all other shares tendered and not purchased, will occur
Altaba may, in the future, decide to purchase more shares of its common
stock. Any such purchases may be on the same terms as, or on terms that
are more or less favorable to stockholders than, the terms of the tender
offer. Rule 13e-4(f)(6) under the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), however, prohibits the Company and its
affiliates from purchasing any shares, other than pursuant to the tender
offer, until at least ten business days after the expiration of the
tender offer, except pursuant to certain limited exceptions provided in
Rule 14e-5 under the Exchange Act.
J.P. Morgan Securities LLC served as dealer manager for the tender
offer, Innisfree M&A Incorporated is serving as information agent for
the tender offer and Computershare Trust Company, N.A. is serving as
depositary for the tender offer. For more information about the tender
offer, please contact Innisfree M&A Incorporated at (877) 750-9498.
About Altaba Inc.
Altaba Inc. (NASDAQ:AABA) is an independent, publicly traded,
non-diversified, closed-end management investment company registered
under the Investment Company Act of 1940. Altaba's mission is to fully
realize the funds' value for stockholders. The fund's assets
primarily—but not entirely—comprise two visionary investments made by
the Company's founders: the first a substantial investment in Alibaba
Group Holding Limited, which has become one of the world's largest
online retailers, and the second in Yahoo Japan Corporation, now a
leading Japanese internet company.
Prior to June 19, 2017, Altaba was known as "Yahoo! Inc." Altaba was
created after the sale of its operating businesses, at which time Yahoo!
Inc. reorganized as an investment company, was renamed Altaba Inc., and
began trading under the Nasdaq ticker symbol AABA.
Visit www.altaba.com for
View source version on businesswire.com: http://www.businesswire.com/news/home/20170619005388/en/
Alan Oshiki, 212-371-5999
Source: Altaba Inc.
News Provided by Acquire Media