Online retailer Saks Incorporated announced that its Board of Directors has authorized a 35 million-share increase in its common stock share repurchase program.
To date during the fiscal fourth quarter, the Company has repurchased 8.0 million shares for approximately $140.8 million, leaving approximately 7.7 million shares remaining under its existing 35 million share repurchase authorization.
As previously announced, the Company has agreed to sell its Northern Department Store Group (NDSG) to The Bon-Ton Stores, Inc. for $1.185 billion in a transaction the Company expects will close early in the first fiscal quarter of 2006.
Closing of the transaction is subject to conditions, including Bon-Ton's financing for the transaction, the expiration or termination of all waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act, and various other customary conditions.
The Company anticipates distributing a substantial portion of the net proceeds from the transaction to its shareholders, which could include share repurchases, a special cash dividend, or a combination of the two.
In anticipation of the closing of the NDSG transaction, the Company's Board of Directors has approved a 35 million share increase in its common share repurchase program, bringing the total available for repurchase to approximately 42.7 million shares.
Shares may be purchased in open-market, negotiated, and other transactions as may be available. Implementation of the increased buyback program will depend on market conditions, the Company's other cash requirements, and other factors.
marketing@alchempro.com
