Dollar General Unveils 30 Million-Share Offering

Dollar General Corp. (DG) said an offering of 30 million shares
being sold by shareholders priced at a 0.5% discount to Thursday's
close.
The discount chain had unveiled the offering earlier
Thursday on behalf of selling shareholders, following a series of
similar offerings in recent months as top holders pare their stakes. The
company, which had about 333.7 million shares outstanding on Aug. 27,
won't get any of the proceeds.
The shares priced at $51.75 apiece.
Most
of the shares will come from KKR & Co. (KKR) led Buck Holdings L.P.
The latest offering is poised to reduce Buck's stake from the current
34% to as low as 22%. Dollar General also said it has agreed to
repurchase shares worth $250 million from Buck Holdings.
KKR led
the deep-discount retailer's 2007 leveraged buyout, which at the time
cost $7.2 billion. Dollar General then went public again in 2009.
Earlier
this month, Dollar General reported its fiscal second-quarter earnings
surged 47% as the retailer of low-priced goods had strong sales across
all of its segments, including a double-digit increase in consumables
sales.
At the time, Dollar General also unveiled an additional
$500 million in total share-buyback authorization, bringing its total
buyback authorization to $1 billion.
Holders also offered shares of Dollar General for sale in December, March and June.
Shares fell by 10 cents to $51.90 after hours. The stock is up 39% in the past 12 months.
-Nathalie Tadena contributed to this story.
Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com
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