Monster Beverage Begins Dutch Auction Tender Offer To Buy Up To $2.0 Bln Stock

(RTTNews) - Monster Beverage Corp. (MNST) said that it has commenced a modified "Dutch auction" tender offer to purchase shares of its common stock for cash at a price per share of not less than $142.00 and not greater than $160.00, for a maximum aggregate purchase price of no more than $2.0 billion.

The tender offer, which will be funded with cash on hand, begins today, May 10, 2016, and will expire at 5:00 p.m., New York City time, on June 8, 2016, unless extended or earlier terminated by Monster.

Monster shareholders may tender all or a portion of their shares at a price specified by the tendering shareholder of not less than $142.00 nor greater than $160.00 per share in increments of $1.00.

Alternatively, Monster shareholders may tender shares without specifying a purchase price, in which case their shares will be purchased at the purchase price determined in accordance with the tender offer. When the tender offer expires, Monster will determine the lowest price per share within the range specified above that will enable it to purchase the maximum number of shares of its common stock having an aggregate purchase price not exceeding $2.0 billion.

The company noted that all shares accepted in the tender offer will be purchased at the same price, which may be higher or lower than the market price immediately prior to or during the tender offer. If the tender offer is fully subscribed, then shares of common stock having an aggregate purchase price of $2.0 billion will be purchased, representing between 6.2% to 6.9% of Monster's issued and outstanding shares as of April 15, 2016, depending on the purchase price payable in the tender offer.