The specialty chemicals maker,
), has entered into a $150 million accelerated share repurchase
agreement (ASR) with Citibank, N.A., a subsidiary of
Under the agreement, Ashland has agreed to buyback a total of
$150 million of its common stock from Citibank, with immediate
delivery of roughly 1.3 million shares depending on current
The new ASR is a part of a previously declared $600 million
share repurchase program. The move adopted by Ashland testifies
to its commitment to boost shareholders' value.
The total number of shares to be eventually repurchased by
Ashland under the ASR will depend on its volume-weighted average
stock price during the term of the ASR, less an agreed discount.
The term of the ASR is expected to be between one and three
months and the actual number of shares purchased will be
determined at the ASR's completion. The funds for ASR will be
provided by cash on hand.
Ashland makes nickel and cobalt-based alloys in sheet coil and
plate forms. Its Consumer Markets segment markets Valvoline, the
world's first lubricating oil. It also operates the Valvoline
Instant Oil Change, the nation's second-largest franchised
quick-lube chain. Ashland offers specialty chemicals to more than
ASHLAND INC (ASH): Free Stock Analysis Report
CITIGROUP INC (C): Free Stock Analysis Report
METHANEX CORP (MEOH): Free Stock Analysis
SHIN-ETSU CHEM (SHECY): Get Free Report
To read this article on Zacks.com click here.
Last month, Ashland, reported second-quarter fiscal 2013 (ended
Mar 31, 2013) adjusted earnings (excluding one-time items) from
continuing operation of $1.78 per share, outshining the Zacks
Consensus Estimate of $1.56.
Profits from continuing operations, as reported, fell roughly 39%
year over year to $55 million or 68 cents a share. Revenues fell
5% year over year to $1,974 million, missing the Zacks Consensus
Estimate of $2,057 million. Ashland was challenged by weakness
prevailing in a number of key regions, especially Europe. It
witnessed lower sales across each of its business segments in the
quarter on lower demand.
Ashland currently carries a short-term Zacks Rank #4 (Sell).
Other companies in the chemical industry that are worth
Shin-Etsu Chemical Co., Ltd
). Both retain a Zacks Rank #1 (Strong Buy)