ADM Announces USD1bn Accelerated Share Repurchase Agreement

ADM announced that it has entered into an accelerated share repurchase (ASR) agreement with delayed share delivery with Merrill Lynch International, an affiliate of BofA Securities, Inc., to repurchase USD1bn of ADM’s common stock.

“We finished 2023 with strong momentum in terms of returning cash to our shareholders, and we will continue to prioritize shareholders in our cash deployment in 2024,” Board Chair and CEO Juan Luciano said. “After repurchasing USD1.5bn of shares in Q4 2023 and nearly USD330m of shares so far in Q1 2024, we are accelerating our program, with an intention to actualize USD2bn of additional share repurchases during the remainder of the year, including USD1bn of which will be executed through this accelerated share repurchase program, which runs through the second quarter.”

Under the ASR agreement, ADM will receive monthly share deliveries at the end of each month commencing in March 2024. The total number of shares to be repurchased through the ASR will be determined using a formula based on ADM’s share price during the term of the transaction, with the purchase price determined using a formula based on ADM’s daily volume-weighted average price during the term of the transaction, net of a discount, and is expected to be completed no later than the end of the second quarter of 2024. The ASR will be completed under ADM’s existing 200 million share repurchase program that runs through 2024.