News

Blackstone to sell nearly half of NCR holdings

March 14, 2017

NCR Corp. has launched a secondary offering of 342,000 shares of its Series A Convertible Preferred Stock by "certain existing stockholders of the company affiliated with The Blackstone Group LP," according to a company press release.

NCR has entered into a buyback agreement under which the selling stockholders will convert 90,000 of their remaining shares of preferred stock into approximately 3 million shares of common stock and sell these shares to the company for a purchase price of $48.47 per share — the NCR stock price as at close-of-day March 10.

In connection with these transactions, NCR has agreed to waive previously disclosed transfer restrictions to permit the sales of the preferred and common stock shares. In addition, Blackstone Group stockholders agreed to extend the transfer restrictions applicable to their remaining preferred stock from June until Dec. 1.

According to a report by the Wall Street Journal, Blackstone stands to net $698 million on the sale. The firm invested $820 million in NCR in November 2015; the ATM-maker said then that the Blackstone investment would allow it to fund the repurchase of up to $1 billion of its common stock at a price range between $26.00 and $29.50 per share.