Unocal begins stock repurchase program
El Segundo, Calif., Dec. 27, 1996 -- Unocal Corporation today said it will begin its previously announced common stock repurchase program.
The common shares will be repurchased through open market or privately negotiated transactions at the discretion of company management, depending upon financial and market conditions or as otherwise permitted under applicable rules.
The company's board of directors has authorized the repurchase of up to $400 million of the company's stock. If the entire authorized amount is repurchased, it would represent about 4 percent of Unocal's outstanding 250 million shares of common stock, based on the current market price.
"We believe our common stock is undervalued at this time, given our potential to grow the business," said Roger C. Beach, Unocal chairman and chief executive officer. "The repurchase of our shares represents an attractive investment opportunity for Unocal, as well as a valuable tool for building stockholder value."
The company had said that it would use the net proceeds from the sale of its West Coast refining, marketing and transportation assets to Tosco Corporation to fund the stock repurchase program, as well as to reduce Unocal's overall debt and invest in new growth projects. The company expects the sale to close in the first quarter 1997. Until closing, the stock repurchase program will be funded from other sources of cash.
Beach noted that if new, attractive investment opportunities become available, the stock repurchase and debt paydown programs could be affected.
Updated: December 1996