(AMGN) Amgen $5B Share Buyback Announced Today
Amgen, Inc. shares (AMGN) got a nice boost this morning after the biotech company’s officials announced today that they plan to buy back up to $5 billion of Amgen stock.
The California company announced it the Amgen share buyback will be occur in the $54 to $60 per share range in a modified Dutch auction tender offer, which allows shareholders to set the number of shares they want to sell and the price they are willing to accept in the company’s range. Then, Amgen will figure the lowest price they will have to pay to get to $5 billion, and will pay that one price to all shareholders. If the shareholder’s set price is higher than the subsequent Amgen buyback price, those shareholders shares will not be bought.
Amgen stated that with their strong cash flow and outstanding balance sheet, along with the current low interest rates, this a great time to go ahead with a share buyback. Amgen stock is currently at a price to earnings of around 14, making it historically cheap too.
Amgen will float a public offering of senior notes to pay for the share buyback, with Bank Of America Merrill Lynch, Morgan Stanley, JP Morgan and Citigroup taking part in the notes offering.
On the Amgen buyback news, Amgen shares are currently up $2.73, or just under 5% to $57.90.
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