Yahoo! shares were modestly higher in pre-market trade after the company said Tuesday that it has launched self-tender offer to purchase for cash up to $3 billion common shares.
The company said the offer is equal to the volume-weighted average price (VWAP) for an American depository share of Alibaba Group (BABA), multiplied by multiples specified by tendering stockholders not greater than 0.420 nor less than 0.370, provided that in no event will the purchase price be less than $37.00 per share, less applicable withholding taxes and without interest..
The tender offer will expire on June 13 at 11:59 p.m. ET., unless extended. The company said the purpose of the tender offer is to provide liquidity to a potentially significant number of stockholders that will be forced to sell their shares at or prior to the closing of the pending sale of Yahoo’s operating business to Verizon Communications (VZ).