Ecovyst Inc., made an announcement today regarding a stock buyback plan. The news follows INEOS Limited's intention to offer for sale 14,000,000 shares of Ecovyst's common stock. In addition, the Selling Stockholder plans to grant the underwriter an option to purchase up to an additional 2,100,000 shares.

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Stock Buyback Details

As part of the offering, the Selling Stockholder will receive all the net proceeds generated. It's important to note that no shares will be sold by Ecovyst itself. However, once the offering is completed, Ecovyst intends to repurchase 4,000,000 shares of the common stock being sold in the offering. The repurchase price per share will be equal to the price paid by the underwriter to the Selling Stockholder. To finance this stock buyback, Ecovyst plans to utilize cash on hand and cash from its operations.

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Conditions and Expectations

The share repurchase is expected to occur simultaneously with the closing of the offering, provided that it is completed successfully. However, it's crucial to acknowledge that the offering is subject to market and other conditions. Therefore, there is no guarantee as to when or if the offering will be finalized. Ecovyst remains optimistic but acknowledges the uncertainty surrounding the completion of the offering.

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Underwriter's Role

J.P. Morgan has been appointed as the underwriter for the offering. Their role includes facilitating the sale of the 14,000,000 shares by the Selling Stockholder. Additionally, they may exercise the option to purchase up to 2,100,000 additional shares. The involvement of a reputable underwriter like J.P. Morgan adds a level of expertise and credibility to the offering process.

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Members of LevelFields received the alert of this event on May 23, 4:55 PM ET