MRO Magazine

Monsanto Company Announces New $3 Billion Accelerated Share Repurchase


October 9, 2015
By Business Wire News

ST. LOUIS

Monsanto Company (NYSE: MON) announced that it has entered into accelerated share repurchase (ASR) agreements with Citibank, N.A. and JPMorgan Chase Bank, N.A. to repurchase an aggregate of $3 billion of the company’s common stock. Today’s ASR is part of Monsanto’s $10 billion share repurchase authorization announced in June 2014.

“With the successful completion of our previous $6 billion accelerated share buyback in fiscal year 2015, we’ve repurchased more than 10 percent of our shares outstanding since June 2014,” said Pierre Courduroux, Senior Vice President and Chief Financial Officer for Monsanto Company. “Today’s new $3 billion accelerated share repurchase agreements demonstrate our continued commitment to creating and returning value to our shareowners, as we progress toward our targeted capital structure.”

Under the terms of the ASR agreements, Monsanto will repurchase $3 billion of its common stock from Citibank, N.A. and JPMorgan Chase Bank, N.A. with an aggregate initial delivery of approximately 28.4 million shares based on current market prices. The final number of shares to be repurchased will be based on Monsanto’s volume-weighted average stock price during the terms of the transactions, less a discount. The ASR is expected to be completed sometime in the next six months. The company is funding the ASR with proceeds from issuance of commercial paper and cash on hand.

About Monsanto Company

Monsanto is committed to bringing a broad range of solutions to help nourish our growing world. We produce a variety of seeds ranging from fruits and vegetables to key crops – such as corn, soybeans, and cotton – that help farmers produce abundant and nutritious food. We work to find sustainable agriculture solutions that help farmers conserve natural resources, use data to improve farming practices, use water and other important resources more efficiently, and protect their crops from pests and disease. Through programs and partnerships, we collaborate with farmers, researchers, nonprofit organizations, universities and others to help tackle some of the world’s biggest challenges. To learn more about Monsanto, our commitments and our more than 20,000 dedicated employees, please visit: discover.monsanto.com and monsanto.com. Follow our business on Twitter® at twitter.com/MonsantoCo, on the company blog, Beyond the Rows® at monsantoblog.com or subscribe to our News Release RSS Feed.

Monsanto Company
Media:
Sara Miller, 314-694-5824
or
Analysts:
Laura Meyer, 314-694-8148