Yahoo to buy back US$3b shares

[BENGALURU] Yahoo Inc said on Tuesday it would buy back US$3 billion of its common shares to provide liquidity to stockholders looking to sell shares ahead of the company's pending deal with Verizon Communications Inc.

Shares in Yahoo, which has a 15 per cent stake in Chinese e-commerce company Alibaba Group Holding Ltd, were up 2 per cent at US$50.81.

Yahoo said it would pay between US$50.79 and US$44.74 per share based on its calculations, Alibaba's share price and timing of the buyback.

The Dutch auction tender offer will expire on June 13, the company said.

Yahoo said its directors and executive officers will not tender any shares in the buyback offer.

Verizon agreed to buy Yahoo's core internet properties last year for US$4.83 billion in cash. It lowered the original offer by US$350 million in February following two massive cyber attacks at the internet company.

After the Verizon deal, Yahoo will be renamed Altaba, a holding company whose primary assets will be its stake in Alibaba and a 35.5 per cent stake in Yahoo Japan.

REUTERS