Scholastic Corporation announced on March 19 that its Board of Directors has authorized the repurchase of up to $200 million of the company’s common stock through a modified Dutch Auction tender offer. The anticipated purchase price per share will range from $36.00 to $40.00, subject to applicable withholding taxes and without interest.
The company said the offer is expected to begin on March 23 and will expire at 5:00 p.m., New York City time, on April 20, unless extended or terminated earlier. Scholastic plans to fund the repurchase using cash on hand and available borrowings under its revolving credit facility.
Peter Warwick, President and Chief Executive Officer, said, “Following the successful completion of our recent real estate transactions, the Board’s authorization represents a disciplined next step in our capital allocation strategy to further optimize our balance sheet and efficiently return cash to shareholders.”
The offer will be managed by J.P. Morgan Securities LLC as Dealer-Manager, with Georgeson LLC serving as Information Agent and Computershare Trust Company, N.A. as Depositary. Neither Scholastic management nor its board members or agents are making recommendations regarding participation in the offer; shareholders are advised to consult their financial and tax advisors before deciding whether or how many shares to tender.
The company emphasized that this announcement does not constitute an actual offer but is intended for informational purposes only. Official documents related to the tender offer will be distributed upon commencement and filed with the Securities and Exchange Commission (SEC). Shareholders are encouraged to review these materials when available for important details about the terms of the offer.
Scholastic has been a global leader in children’s publishing for over a century, providing books and educational resources worldwide. The company operates in more than 135 countries through various channels including book clubs, fairs, libraries, retail outlets, and online platforms.
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