Charlotte, N.C. Belk has announced plans to repurchase up to 6% of its common stock for $74.9 million.
The offer was filed Wednesday with the Securities and Exchange Commission. In the fling, Belk says it intends to continue the practice every year after its board considers the company’s financial position.
Belk has made similar offers annually since 2006. Because its stock isn’t traded on a public exchange, liquidity can be an issue for shareholders. Ralph Pitts, general counsel, said the retailer buys shares to boost liquidity.
Belk is offering $26 per share for up to 2 million Class A shares and 880,000 Class B shares. Investors have until May 18 to decide whether to sell. If more shares are offered than Belk plans to buy, the company will prorate the offers from shareholders.