Allergan Plans Stock Repurchase with Proceeds from Sale of Generics Business to Teva
Allergan has announced plans for what it intends to do with part of the proceeds from the $40.5 billion sale of its global generics business to Teva Pharmaceutical Industries, which is scheduled to close in June 2016. The company’s board of directors has authorized a new share repurchase program of up to $10 billion of the company’s common stock. Allergan expects to execute $4 billion to $5 billion in open market repurchases over four to six months subject to favorable market conditions.
If favorable market conditions persist, the company will consider extending the program following the completion of the initial portion of the share repurchase program and the implementation of an increase in distributable reserves as approved by the company’s shareholders. The company said that the program may be discontinued at any time.
The share repurchase program is pending the completion of and receipt of proceeds from the divestiture of Allergan’s global gnerics business to Teva, expected to close by the end of June 2016.