Cigna Group is planning a “significant” improve of its inventory buyback, committing an extra $10 billion to the plan after calling off its pursuit of Humana Inc.
The buyback will increase Cigna’s complete share repurchase authority to $11.3 billion, the Bloomfield, Connecticut-based firm mentioned Sunday. Cigna can also be abandoning discussions with Humana, in keeping with an individual with information of the matter who requested to not be recognized.
The Wall Avenue Journal reported earlier Sunday that Cigna is strolling away from the merger talks. Humana didn’t instantly reply to requests for remark.
Cigna expects to repurchase at the very least $5 billion of frequent inventory by the top of the primary half of 2024, in keeping with its assertion. A portion of the repurchase will happen via an accelerated program performed within the first quarter.
“We believe Cigna’s shares are significantly undervalued and repurchases represent a value-enhancing deployment of capital as we work to support high-quality care, improved affordability, and better health outcomes,” mentioned David Cordani, Cigna’s chairman and chief govt officer. “As we have a look at the broader panorama and the strategic alternatives earlier than us, we’ll stay financially disciplined with a transparent deal with executing towards our technique, delivering worth for our shareholders, and investing in our future.
Whereas Cigna didn’t remark publicly on Humana, Cordani mentioned within the assertion that the corporate will “consider bolt-on acquisitions aligned with our strategy, as well as value-enhancing divestitures.”
— With help from John Tozzi
