Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

ODP Jumps on Sale of Unit, Boost to Share Buyback

Published 01/03/2022, 11:14 AM
Updated 01/03/2022, 11:15 AM
© Reuters.

By Dhirendra Tripathi

Investing.com – ODP Corp stock (NASDAQ:ODP) surged 6.3% Monday following a December 31 announcement of the sale of its CompuCom Systems subsidiary for up to $305 million.

The buyer is an affiliate of private equity firm Variant Equity. The consideration for the deal is a mix of cash, an interest-bearing promissory note, and a contingent future earn out, the parent of Office Depot and OfficeMax said.

The stock price also got a boost from the company’s decision to top up its ongoing share repurchase program by $250 million to $650 million. The company said it also expects to complete its previously announced $150 million accelerated stock repurchase plan by first half of 2022.

The company’s board said it continues to evaluate its future capital allocation plans and use of proceeds from the sale.

 

 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.