Retailing giant Woolworths Ltd
(ASX:WOW) has completed a $704 million share buy-back and says it has now returned more that $1 billion to shareholders this year.
In addition to the latest off-market buy-back, Woolworths completed a $325 million on-market buy-back in the first half of the year.
CEO Michael Luscombe says the retailer’s capital structure is geared towards optimising its weighted average cost of capital while still being flexible enough to pursue growth opportunities.
Woolworths says the buy-back received overwhelming shareholder support and so offers were only accepted from shareholders who tendered their shares at a 14 per cent discount or as final price tenders.
Woolworths says 27.5 million shares were bought back at a buy-back price of $25.62.
Woolworths increased its net profit in 2010 to just over $2 billion in the 52 weeks to 27 June.
