The company said that the ASR will be funded with a portion of the profit from the sale of ConAgra’s trading and merchandising segment. Merrill Lynch International (MLI) is an advisor in the program.
ConAgra’s outstanding shares used to calculate earnings per share will be reduced by the number of shares repurchased as they are delivered to the company, and the aggregate price will be recorded as a reduction in stockholders' equity upon its prepayment.
The ASR agreements are subject to terms customary for similar agreements, including provisions permitting adjustments to the length of the valuation and hedging periods, providing for the effect of extraordinary corporate transactions, and setting forth other circumstances under which the agreements may be terminated.
Source: ConAgra Foods Inc.