Leading securities firm KCG Holdings, Inc. Class A (NYSE:KCG) has earlier today published the final results of its “modified Dutch auction” tender offer, which expired on June 2, 2015 at 5:00 p.m., New York City time. The final results were released shortly after the publication of the preliminary results earlier this month.
Based on the final count by Computershare, the depositary for the tender offer, KCG accepted for purchase 23,571,428 shares of KCG’s Class A Common Stock at a purchase price of $14.00 per share, for a total cost of approximately $330 million, stripping out fees and expenses related to the tender offer.
The repurchased shares account for approximately 22% of KCG’s Class A Common Stock outstanding with the exception of restricted stock units as of May 7, 2015.
The tender offer was oversubscribed. Shares were accepted on a pro rata basis, excluding tenders of odd lots, which were accepted in full, for a total cost of approximately $330 million, stripping out fees and expenses related to the tender offer.
KCG has been informed by the depositary that the proration factor for the tender offer, after giving effect to the priority of odd lots, is approximately 29.1%.
Details of the so-called “Dutch auction” offer were published in KCG’s financial report for the first quarter of 2015. Under the terms of the offer, stockholders had the chance to sell stock to KCG at a specified price per share not less than $13.50 and not greater than $14.00.
The tender offer range represents a premium of 5-9% above the closing price of KCG’s common stock on the New York Stock Exchange of $12.84 on April 30, 2015.
To view the official press release by KCG, click here.