IGT to launch $1bn share buyback
Repurchase programme to be funded by cash reserves and borrowings from credit facility " agreement to buy back 21m shares from Goldman Sachs already in place.
International Game Technology (IGT) has announced that its board of directors has approved a US$1bn (£643m) share repurchase programme of its outstanding common stock, replacing the current $500m authorisation.
The programme will be funded by the software supplier’s cash reserves and using borrowings from its revolving credit facility, and will begin on 19 June after IGT agreed to repurchase $400m of common stock “ 21m shares “ from Goldman Sachs. The remaining $600m will be used to buy back shares over the next three to four years.
In a statement released yesterday IGT explained: “These actions demonstrate the board of directors’ confidence and IGT’s continued dedication to responsible capital deployment. Over the past 10 years, IGT has returned over $4 billion in cash to shareholders in share repurchases and dividends.”
The announcement comes after IGT became one of the first companies to have its application for a Nevada online gambling licence approved by the state’s Gaming Control Board (NGCB). It will now be assessed by the Nevada Gaming Commission (NGC) at a meeting on 21 June, when applications from William Hill and Bally Technologies will also be scrutinised.
Speaking at the time IGT CEO Patti Hart commented: This important step will allow IGT to better support our customers as they expand their offerings to their players to include interactive wager based entertainment.”
2012 has also seen IGT make a huge investment in social gaming, acquiring Double Down Interactive for up to $500m in January.