Casey’s convenience store officials says they will purchase just over one quarter of the company’s stock. A release from the Ankeny-based chain says the company is expected to purchase just over 13-million shares of its stock at a price of $38 a share as it continues to move to hold off the hostile takeover of a Canadian company.
Casey’s says it held what is called a “Dutch Auction” and had just over 28 million shares offered, and will buy the 13-million or nearly 26-percent of the company’s outstanding shares. A statement by the company’s C.E.O. says they continue to believe Casey’s stock has been undervalued in recent trading and is worth far more than the $36.75 Alimentation Couche-Tard has offered shareholders.
Casey’s says it will spend about $500-million to purchase the stock and is benefiting from historically low interest rates. Couche Tard’s offer to Casey’s stockholders will expire on August 30th.
Read more on-line at Casey’s website.