The discount retailer will repurchase $500M in stock following a block trade reducing Mantle Ridge’s stake by 12.8M shares.
Dollar Tree will buy back $500 million of its common stock after investors affiliated with Mantle Ridge LP sold 12.8 million shares in a secondary block trade. The sale, facilitated by J.P. Morgan and Goldman Sachs, reduces Mantle Ridge’s ownership stake in the company.
The block trade follows Dollar Tree’s announcement of the repurchase program, which aims to return capital to shareholders. The company had not previously disclosed the size of the buyback or the timing of the share sale.
No immediate market reaction was reported following the announcement, though the buyback may support the stock price amid the reduced float.