RadioShack Corporation (NYSE:RSH) today announced a $300 million accelerated share repurchase plan.
RadioShack Corporation announced that it has entered into accelerated share repurchase agreements with Bank of America N.A. (NYSE:BAC) and Wells Fargo Bank, N.A. (NYSE:WFC), to repurchase an aggregate of approximately $300 million of RadioShack common stock.
This repurchase will be made under the $500 million share repurchase program that was previously authorized by its Board of Directors. The ASR Agreements provide for final adjustments generally based on the discounted average of the volume-weighted average prices of the company’s common stock during the valuation periods of the respective ASR Agreements, which adjustments will affect the total amount expended by the company or the aggregate number of shares it repurchases.
Share buybacks are generally considered to be a good thing for investors because they cause the share price to rise over time.
For more information: please see The benefits of stock buybacks.