USA: ARAMARK announces stock repurchase, employee stock trading programmes
Managed services provider ARAMARK has announced the establishment of a Stock Repurchase Programme and an Employee Stock Trading Programme, in connection with the scheduled lapse in June of restrictions on certain of its Class A shares.
Under the Stock Repurchase Programme, the board of directors has approved the use of up to US$200m to repurchase shares of the corporation's Class A or Class B Common Stock. Repurchases will be made in accordance with applicable securities laws in open market or privately negotiated transactions, depending on market conditions, and may be discontinued at any time.
Aramark will evaluate whether to increase the size of the programme as it progresses.
The corporation also announced the establishment of an Employee Stock Trading Programme, which will be available to all current and former Aramark employee shareholders through Mellon Bank, the transfer agent for the corporation's Class B common stock.
The programme will allow Aramark employee and former employee shareholders to aggregate through Mellon Bank any unrestricted shares they wish to sell into the market. Mellon will execute sales on a rotating basis through certain brokers.
Separately, the corporation has been advised by Joseph Neubauer, Aramark Chairman and CEO, that he has no current intention to sell during the August "window" period any of the 8,746,014 shares which he beneficially owns which become unrestricted in June.
Aramark's executive management, who collectively own 3,154,950 shares which are becoming unrestricted in June, have indicated that it is their current intention not to sell more than one-third of such unrestricted shares during the August "window" period.
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