Yahoo! ups share buyback by $5 bn; may raise up to $1.15 bn

US-based technology major Yahoo! has increased its shares buyback programme by USD 5 billion, and plans to raise up to USD 1.15 billion for funding working capital needs, strategic transactions and acquisitions.
In a filing with US Securities and Exchange Commission (SEC), Yahoo! Inc said: "It has increased its share buyback authorisation by USD 5 billion."
For the nine months ended September 30, 2013, Yahoo! had utilised USD 3.11 billion for the repurchase of 123 million shares at an average price of USD 25.41 per share.
On fund raising, Yahoo said: "It proposes to offer USD 1 billion aggregate principal amount of its convertible senior notes due 2018, subject to market conditions and other factors, in a private placement."

Initial buyers can also purchase up to USD 150 million worth of senior notes, which will be exercisable within a 30-day period, solely to cover over-allotments, it added.
Yahoo said it intends to use a portion of the proceeds to pay the cost of the convertible note hedge transactions.

The SEC filing said: "Yahoo may use up to USD 200 million of the net proceeds from this offering to repurchase shares of its common stock from purchasers of notes in the offering in privately negotiated transactions effected through one of the initial purchasers or its affiliate as Yahoo's agent."
It added: "Remaining net proceeds from the offering will be used for general corporate purposes, including, but not limited to, acquisitions or other strategic transactions, additional repurchases of common stock and working capital."

Yahoo said it has not designated any specific uses of the net proceeds and it has no current agreements or commitments with respect to any material acquisition or strategic transaction.
"Pending any specific application, Yahoo may invest the remaining net proceeds in short and long-term marketable securities," it said.