Boston, MA 09/03/2014 (wallstreetpr) – GP Strategies Corporation (NYSE:GPX) intends to repurchase up to $80 million worth of its common stock shares. The company announced the commencement of the tender offer in which stockholders can tender their shares. The company is willing to repurchase shares in the price range of $26-$29 apiece. It said the tendering process began September 2, and will run through until September 29, except if the tender offer duration is extended or the company withdraws the tendering opportunity.
Price range and amount to repurchase
For the maximum tender price of $29 a share, the company said it would repurchase up to 2,758,621 shares, which suggests about 14.4% of its outstanding common stock shares as of August 29. However, for the minimum tendering price of $26 a share, the company would buy back up to 3,076,923 shares, which suggests about 16.1% of its outstanding common stock shares as of August 29.
The tender offer has been dubbed “Dutch auction” and it gives the stockholders an opportunity to indicate the number of shares that they intend to tender and at what price. However, that is done within the specified price range. GP Strategies Corporation (NYSE:GPX) said that based on the number of shares tendered under the “Dutch auction”, it would determine the lowest price that will enable it to repurchase up to $80 million worth of shares in the aggregate. The company went further to state that all the tendered shares will be repurchase at the same price, even those tendered at a lower price.
GP Strategies Corporation (NYSE:GPX) said that tenders in the current opportunity must be made before the expiration of the offer period. Similarly, withdrawal from the tender offer must be done before the expiration of the tender period. The company said that it would meet the expenses of returning shares not purchased in the tender offer. That will happen promptly after the expiration of the tendering offer.
However, the stockholders whose shares are purchased in the offer will receive their payment in cash promptly after the expiration of the offer. GP Strategies Corporation (NYSE:GPX) said the payment of the purchased shares will have no interest and will be subject to applicable taxes.
