Scholastic Plans to Buy Back Stock

Nov 02, 2010

Scholastic Corp. announced its plans to buy back approximately 5.2 million shares (an increase over the 5 million it originally announced last month) of its stock for $156.9 million, or $30 per share. This price was reached based on the amount of stock proffered as well as the prices specified by shareholders. This comes after a month-long, modified version of a Dutch auction, through which anyone who held shares in Scholastic's common stock was able to sell his or her shares at $27-$31 per share.

The company reports that the number of stocks it expects to purchase and the price it expects to pay are both preliminary figures. It also predicts that it will have shrunk the pool of common stock by about %15.2 after the transaction closes.