Uber To Buyback $1.5 Bln Of Shares Through Accelerated Share Repurchase; Pre-Market Stock Up

(RTTNews) - Uber Technologies, Inc. (UBER) announced on Monday that it has inked an accelerated share repurchase or ASR deal with Bank of America, N.A. to repurchase $1.5 billion of shares as part of its previously announced $7 billion share repurchase authorization. Prashanth Mahendra-Rajah, CFO of Uber, said: "Our stock is undervalued relative to the strength of our business, and we plan to accelerate our buybacks under the existing authorization as a result. This ASR represents a value-enhancing deployment of capital, retiring over one percent of our market cap."

Under the terms, on January 6, Uber will pay $1.5 billion to the dealer and expects to receive an initial delivery of 18.578 million shares.

Under the ASR, the total number of shares to be repurchased by Uber will be based on the volume-weighted average price of Uber stock on specified dates during the term of the ASR agreement.

The transactions under the ASR agreement are expected to be completed in the first quarter.

UBER was up by 5.40 percent at $68.08 in the pre-market trade on the New York Stock Exchange.