Genpact Ltd. entered into an accelerated share repurchase agreement with Morgan Stanley & Co. LLC to repurchase $200 million of the company's common stock.
On March 30, Genpact will pay to the dealer $200 million in exchange for the initial delivery of 6,578,947 common shares based on its current stock price. The final number of shares ultimately repurchased by the company will be based on its volume-weighted average share price during the term of the transaction, less a discount and subject to adjustments.
The transaction is expected to close by the end of the fourth quarter.
Genpact expects to fund the agreement through a combination of surplus cash, operating cash flows and net proceeds from the recently completed private debt offering by Genpact unit Genpact Luxembourg S.à r.l.
Of its total share repurchase authorization of $1.25 billion, Genpact currently has approximately $658 million available, including the $200 million allocated for repurchases under the accelerated share repurchase agreement.