Chipotle Mexican Grill Inc. announced it has added an additional $100 million to the existing $100 million repurchase plan previously announced on Oct. 18. The company has repurchased about $40 million through Nov. 19 under the previously-announced $100 million buyback.
Chipotle also announced that $25 million of the authorized repurchases will be conducted through a privately negotiated accelerated share repurchase transaction, or ASR, with Morgan Stanley. The specific number of shares to be repurchased under the ASR will be based generally on the volume-weighted average share price of the company's common stock over a specified period.
The accelerated repurchase transaction is scheduled to be completed during the first quarter of 2013, but may be accelerated at the option of Morgan Stanley.
The remaining $75 million has been added to Chipotle's existing open–market repurchase agreement. The additional repurchases were authorized by Chipotle's board of directors on Nov. 20 and may be modified, suspended, or discontinued at any time.
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