In a significant move, Bumble Inc. (NASDAQ:BMBL) has entered into a transaction to repurchase a substantial amount of its equity from Blackstone (NYSE:BX) Inc. affiliates.
On Sunday, the company announced an agreement to buy back 2,509,316 shares of its Class A common stock and 1,996,487 limited partnership interests in Bumble Holdings, which are exchangeable on a one-for-one basis for Class A shares.
The repurchase price per equity interest has been set at $11.0968, amounting to a total purchase price of $50 million.
This transaction falls under Bumble's existing share repurchase program, which, after the completion of this deal, will have approximately $72.9 million of authorization remaining. The repurchase is scheduled to close by Thursday, March 7, 2024.
The decision to repurchase the shares was approved by a special committee of Bumble's Board of Directors, which is composed entirely of independent directors not affiliated with Blackstone. This committee was granted the authority to approve such transactions by the Board of Directors.
The Share and Unit Repurchase Agreement includes standard representations, warranties, and covenants by the parties involved. This move by Bumble to reacquire equity interests from Blackstone is part of a broader strategy often employed by companies to manage their capital structure and shareholder value.
The information presented in this article is based on a press release statement from Bumble Inc. and is intended to provide investors and the public with key facts regarding the transaction. It does not include any promotional content or subjective commentary on the part of Bumble or Blackstone.
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