Starbucks executing $5B accelerated share buyback

Business 10/12/2018, 2:23 PM
Starbucks executing $5B accelerated share buyback

Starbucks Corporation announced on Friday it is currently executing a $5 billion accelerated share repurchase program (ASR) of its common stock with the help of two financial institutions. The effort is a part of the coffee shop chain's earlier disclosed plan to return $25 billion to shareholders in the form of share buybacks and dividends before the end of fiscal 2020.

"Initial delivery of shares represented approximately 80% of the total shares that will be repurchased under the ASR, which is expected to be completed as early as February 2019 and no later than March 2019," Starbucks said. The company noted it used funds received from its $7.15 billion deal with Nestle to execute the buyback program.

Starbucks shares jumped 2.08% in pre-market trading following the announcement.

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