Weight Watchers International, Inc. (NYSE: WTW) is putting a bloated share base on a diet, taking down a total of about $1.5 billion in shares. After the company’s earnings announcement the company also reported that it is planning to launch a modified Dutch tender offer for up to $720,000,000 of its common stock. It is also entering into a repurchase plan with its largest shareholder.
After closing at $79.34, the company’s range is no less than $72.00 per share and no more than $83.00 per share.
The company is noting that this is a 4.3% premium to a 20.3% premium to the year-to-date volume-weighted average price of $69.00 per share for the Company’s common stock.
As far as when this will take place, that is expected to commence next week and it was further noted that the offer remain open for at least 20 business days.
Weight Watchers also announced today that it has entered into an agreement to purchase shares from Artal, which owns approximately 52% of its outstanding shares. The purchase will be consistent with shares repurchased in the tender to keep the ownership roughly the same.
Keep in mind that the market capitalization rate of Weight Watchers is about $5.84 billion before the effects of these buybacks.
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