Shares of DaVita Inc. (DVA) rallied 2.7% in premarket trading Monday, after the kidney services provider said it has launched a tender to buy back up $1 billion worth of its stock. The company said it will pay no less than $77 a share and not more than $88 a share for it stock, which closed Friday at $82.17. At Friday's closing price, a $1 billion buyback could represent about 12.2 million shares, or about 10% of the shares outstanding. DaVita said it expects to fund the share repurchases with cash on hand and if necessary, borrowing under its current undrawn $1 billion revolving line of credit. The stock has gained 9.5% year to date through Friday, while the S&P 500 has tacked on 4.4%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
August 17, 2020 06:16 ET (10:16 GMT)
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