Qualcomm Incorporated (NASDAQ: QCOM) announced today in which in which commenced a “modified Dutch auction” tender offer to purchase up to $10 billion of shares of its common stock, or such lesser number of shares of its common stock as are properly tendered along with not properly withdrawn, at a cost not less than $60.00 nor greater than $67.50 per share of common stock, to the seller in cash, less any applicable withholding taxes along with without interest (the “Offer”). The Offer is usually made upon the terms along with subject to the conditions described from the offer to purchase along with from the related letter of transmittal. The closing cost of Qualcomm’s common stock on the NASDAQ Global Select Market on July 30, 2018, the last full trading day before the commencement of the Offer, was $62.04 per share. The Offer is usually scheduled to expire at 12:00 midnight, brand new York City time, at the end of the day on August 27, 2018, unless the Offer is usually extended.
Qualcomm believes in which the Offer represents an efficient mechanism to provide Qualcomm’s stockholders with the opportunity to tender all or a portion of their stock along with thereby receive a return of some or all of their investment in Qualcomm if they so elect. The Offer provides stockholders with an opportunity to obtain liquidity with respect to all or a portion of their stock without the potential disruption to Qualcomm’s stock cost.
This particular Offer is usually the first step in a broader stock repurchase program in which may include future open market transactions along with/or accelerated share repurchase transactions. Qualcomm expects to execute on a substantial portion of its authorized $30 billion stock repurchase program by the end of fiscal year 2019.
The Offer is usually not contingent upon obtaining any financing. However, the Offer is usually subject to numerous various other terms along with conditions, which are described in detail from the offer to purchase. Specific instructions along that has a complete explanation of the terms along with conditions of the Offer will be contained from the offer to purchase, the letter of transmittal along with the related materials, which will be mailed to stockholders of record shortly after commencement of the Offer.
None of Qualcomm, the members of its Board of Directors, the dealer manager, the information agent or the depositary makes any recommendation as to whether any stockholder should participate or refrain coming from participating from the Offer or as to the cost or prices at which stockholders may choose to tender their shares from the Offer.
—CNBC’s Sara Salinas contributed to This particular report.