Kroger Announces $5.0 Bln Accelerated Share Repurchase Agreements

(RTTNews) - Kroger Co. (KR) announced that it reached Accelerated Share Repurchase agreements with each of Wells Fargo Bank, National Association and Citibank, N.A. to repurchase, in aggregate, $5.0 billion in shares of Kroger common stock. The ASR agreements will be completed under Kroger's $7.5 billion share repurchase authorization.

Kroger noted that it is funding the share repurchases under the ASR agreements with existing cash on hand.

As per the ASR agreements, Kroger will pay $5.0 billion to the Dealers and expects to receive an initial delivery of approximately 65.6 million shares of Kroger common stock on December 20, 2024, representing approximately 80% of the total number of shares of Kroger common stock that could be purchased with $5.0 billion at a price per share equal to the closing price of Kroger common shares on December 19, 2024.

Final settlement under the ASR agreements is expected to occur no later than the third fiscal quarter of Kroger's Fiscal 2025.

In addition to the ASR program, Kroger has $2.5 billion of capacity remaining under its share repurchase authorization for incremental share repurchases over time.