Another Share Offering at Dollar General

Retail

Published: March 27, 2013 8:55 am

Last Updated: April 27, 2020 4:08 pm

Discount retailer Dollar General Corp. (NYSE: DG) said this morning that it will sell 30 million shares in a secondary offering and that all the shares on offer are being sold by existing shareholders. The company will not receive any proceeds from the sale. The underwriters have received from the selling shareholders an option to purchase up to 4.5 million additional shares.

The chief beneficiary of the offering will be KKR & Co. (NYSE: KKR) through its Bucks Holding affiliate. Last September KKR and Bucks Holding sold 29.6 million shares of Dollar General stock, and the company repurchased another 4.7 million shares in a $250 million buyback. Bucks Holding’s stake in the company will drop from 16.5% to 7.5%, not including the underwriter’s option, and 6.5% including the option.

Among other sellers are five of Dollar General’s executive officers, none of whom owns more than 1% of the company’s stock before the offering.

No date or offering price has been set for the sale.

Dollar General’s shares closed at $52.22 last night in a 52-week range of $39.73 to $56.04. Shares are down about 2.5% in premarket trading this morning, at $50.91.

Get Ready To Retire ^(Sponsored)

Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future