Jun 18 2010
Genzyme Corporation (NASDAQ: GENZ) announced today that it has entered into an agreement with Goldman, Sachs & Co. to repurchase $1 billion of Genzyme common stock under an accelerated stock repurchase program. Proceeds from its recently concluded debt offering will be used to support this first tranche of Genzyme's overall $2 billion share repurchase plan announced in May.
“This balanced plan also includes long-term drivers of sustainable growth, such as a focus on core businesses and executing on our important late-stage pipeline, while improving operating margins.”
"Our stock repurchase program is part of a comprehensive five-point plan to increase shareholder value," said Henri Termeer, Genzyme's chairman and chief executive officer. "This balanced plan also includes long-term drivers of sustainable growth, such as a focus on core businesses and executing on our important late-stage pipeline, while improving operating margins."
Under the agreement, Genzyme is scheduled to pay $1 billion to Goldman, Sachs & Co. on June 22, 2010 and receive approximately 15.5 million shares, currently estimated to be approximately 80 percent of the shares to be repurchased based on the closing share price on June 17, 2010.
The total number of shares ultimately repurchased under the agreement will be determined upon final settlement. Genzyme will either receive additional shares of common stock or, under certain circumstances, be required to remit a settlement amount, payable, at Genzyme's option, in cash or common stock, based generally on the volume-weighted average share price of Genzyme's common stock during a period of up to four months, as stated in the agreement.
Genzyme worked with Goldman, Sachs & Co. and an affiliate of Credit Suisse Securities (USA) LLC in structuring the accelerated stock repurchase program.