ResMed (ASX:RMD) has entered into a $450 million accelerated share repurchase agreement with Citibank on Monday to repurchase shares of its common stock, according to a Wednesday filing with the Australian bourse.
The transaction is being carried out under the company's existing authorization, approved by its board in February 2014, to repurchase up to 20 million shares, per the filing.
The transaction will be financed through proceeds from the sale of its MatrixCare business and cash on hand, with an initial share delivery on Thursday representing 80% of the purchase price, based on Wednesday's closing price, the filing said.
The final number of shares will be determined based on the average daily volume-weighted share price, after applying a discount, with settlement expected in December, the filing added.
The company's shares fell 3% in recent Wednesday trade.