Newhall Land & Farming in Valencia launched a buyback of up to 2 million, or 10%, of its ownership units in a transaction that could be valued as high as $112 million.
Newhall, a real estate and agricultural concern, is organized as a master limited partnership whose units are publicly traded on the New York Stock Exchange.
On Monday, the company began a so-called Dutch auction tender offer, whereby Newhall unit holders who tender can specify the price they want within a range of $50 to $56 a unit. After the offer closes, Newhall will select a price within that range for payment to unit holders who tendered at or below that price.
The offer is part of Newhall’s previously announced settlement of a class-action lawsuit that was brought by several dissident unit holders last year. As part of the settlement, Newhall agreed to buy back at least $40 million of its units.