Car Products’ Maker Plans Stock Buyback

Automotive chemicals and gaskets maker Wynn’s International Inc. said Wednesday it expects to purchase 1.1 million shares of its stock from shareholders at $24.25 per share as the result of a so-called Dutch auction tender offer.

The stock buyback was announced last month and the tender offer expired at midnight Tuesday. Companies typically buy up blocks of their own stock to increase the value to investors of the shares that remain publicly traded. Wynn’s will be purchasing an amount equal to 8% of its shares outstanding.

In a Dutch auction offer, the buyer sets a minimum and maximum price it is willing to pay for the shares and then asks stockholders to submit offers at the prices they are willing to accept. From those offers, the buyer determines the lowest price at which it can obtain all the shares it needs, and then acquires the shares at that price.

Wynn’s said it was offered almost 1.6 million shares at prices at or below $24.25 a share, and will acquire the 1.1 million shares on a prorated basis from those sellers.

Wynn’s stock, traded on the New York Stock Exchange, closed at $24.625 per share when the offer expired Tuesday. It was trading at $22.875 a share when the offer was issued last month.