Baker Hughes company announces $2 billion share repurchase authorization

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Baker Hughes Company announced Friday that its Board of Directors has authorized Baker Hughes Holdings LLC  to repurchase up to $2 billion of its common units.

The announcement said the firm will use the proceeds from the sale of its BHH LLC common units to repurchase its Class A shares.

“Today’s announcement represents further confirmation on our optimistic view of the future for the Company. We believe this announced buyback is an attractive use of cash given the value of our company and the highly accretive nature of this program,” said Lorenzo Simonelli, Baker Hughes chairman and CEO.

He said at the existing share price, the repurchase represents more than 9% of the company’s outstanding shares.

Baker Hughes and BHH LLC are also authorized to enter into an agreement with GE whereby BHH LLC will repurchase its common units from GE on a pro rata basis and on the same terms as it repurchases common units from Baker Hughes. The proceeds distributed to Baker Hughes will be used to repurchase Class A shares on the open market or in privately negotiated transactions.

Baker Hughes expects to fund the repurchase program from cash generated from operations. The exact number of shares to be repurchased by the company is not guaranteed.

Source: press release