ON Semiconductor Corp. announced that the company agreed to repurchase 5 million shares of its common stock. The company reached this agreement with Lehman Brothers as the underwriter of the recently announced public resale of 49.2 million shares by affiliates of TPG. ON Semiconductor will pay for these shares using cash on hand.
At the close of this transaction, which is expected to be May 11, 2007, the company will have repurchased just over 45 million of the 50 million shares of common stock authorized by the Board of Directors in November of 2006.
"We are excited about our ability to purchase a large amount of our company’s common stock using cash on hand through this privately negotiated transaction. We believe this transaction provides an example of how the company can use free cash flow from operations for shareholder friendly actions such as stock repurchases," said Donald Colvin, ON Semiconductor Executive Vice President and CFO.
