Seagate buys back $1.51B worth of shares from Samsung

|About: Seagate Technology (STX)|By:, SA News Editor

Seagate (STX -0.7%) paid Samsung $1.51B to repurchase 32.7M shares at a price of $46.03. The buyback allows Seagate to retire 9.1% of its outstanding shares. (8-K) (PR)

Samsung continues to own 12.5M Seagate shares, courtesy of the former's 2011 sale of its hard drive unit to the latter. Samsung chip division chief Seh-Woong Jeong will remain on Seagate's board.

Seagate has been aggressively buying back shares over the last two years (though its pace slowed to $42M in the June quarter), and has promised to return ~70% of its FY14 (ends June '14) operating cash flow to shareholders. The company had $2.3B in cash/investments on its balance sheet as of June 28, and $2.78B in debt.