Pursuant to the tender offer, Wendys Co (NASDAQ:WEN)’s stockholders may tender all or a portion of their shares at a price specified by the tendering stockholder of not less than $11.05 and not more than $12.25 per share. They may also tender their shares without specifying a purchase price, in which case their shares will be purchased at the purchase price determined in accordance with the tender offer. On the expiration of the offer, the company will determine the lowest price within the range of prices, enabling the Company to purchase up to $639 million of its common stock. The tender offer will expire at the end of the day on June 30, 2015, unless extended or terminated by the company.
In a statement, Wendys Co (NASDAQ:WEN) said that the tender offer is part of an $850 million stock buyback program, which also includes a separate purchase of up to $211.0 million of the company’s common stock from Trian. Wendys also noted in its statement that Trian intends to reduce its shares ownership in the company from 24.8% to between 17% and 19.68% over the next few months by selling shares to the company and in the open market and/or privately-negotiated transactions.
Wendys Co (NASDAQ:WEN) is one of the world’s largest quick-service hamburger companies. During the past 12 months, shares of the company’s stock have increased by a strong 41.19%. Among the largest shareholders of the company is Murray Stahl’s Horizon Asset Management, which held 28.60 million shares as of the end of the first quarter.