QUALCOMM, Inc. (NASDAQ: QCOM) announced Tuesday it has completed a portion of its accelerated share buyback plan.
Qualcomm said it will buy back 76.2 million shares in a $5.1-billion tender offer.
The tender offer equates to $67.50 per share. The initial stage of the plan authorized up to $10 billion in share buybacks.
Why It's Important
A tender offer is an offer to purchase some or all of shareholders’ shares in a corporation, generally at a premium to the current market price, according to Investopedia. The SEC requires any corporation or individual acquiring at least 5 percent of a company to disclose the stake.
Qualcomm announced the buyback plan last month, after it said it was abandoning a -billion takeover of NXP Semiconductors NV (NASDAQ: NXPI) to instead invest in its own business.
The company has authorized up to $30 billion in share buybacks that are expected to wrap by September 2019.
Qualcomm shares were up 3.62 percent at $69.78 at the close Tuesday.
Qualcomm's Risk-Reward Is Too Favorable to Ignore, Cowen Says In Upgrade
NXP Semiconductors' Standalone Value Is 9, SunTrust Says In Downgrade
Photo courtesy of Qualcomm.
See more from Benzinga
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.