Allison Transmission (ALSN) Announces $1B Stock Buyback Plan

November 16, 2016 8:31 AM EST

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Allison Transmission Holdings Inc. (NYSE: ALSN) today announced that its board of directors recently concluded a review of the Company's business plan including product development and capital spending forecasts supporting growth initiatives and other shareholder value enhancing programs. In addition, the board of directors consulted with a number of stockholders, including Ashe Capital Management, Longview Asset Management, and ValueAct Capital, regarding capital allocation. Following an assessment of alternatives and perspectives, the board of directors has authorized a new stock repurchase program for up to $1 billion of its common stock. The Company anticipates repurchasing its common stock under the stock repurchase program from time to time through Dec. 31, 2019. The Company expects to complete its current $500 million stock repurchase program by Dec. 31, 2016.

Repurchases under the program may be made in the open market, in privately negotiated transactions or otherwise, with the amount and timing of repurchases depending on market conditions and corporate needs. Open market repurchases will be structured to occur within the pricing and volume requirements of Rule 10b-18. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. This stock repurchase program does not obligate the Company to acquire any particular amount of its common stock and the program may be extended, modified, suspended or discontinued at any time at the Company's discretion.



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