Clothing company Jones Apparel Group Inc said it expects after-tax proceeds, net of transaction expenses, of about $840 million as it completed the sale of its Barneys New York Inc unit.
Jones also said it will buy back $400 million of shares from Goldman Sachs & Co under an accelerated share repurchase agreement, with about 15.5 million shares to be received by Sept. 12.
The board has authorized an additional $500 million of repurchases to facilitate the accelerated share repurchase program and other possible future buybacks, Jones Apparel said in a statement.
Under its existing authorization for repurchases, passed by the board in February, $205 million remains available for stock repurchases, the company said.
Luxury clothing chain Barneys New York was bought by Dubai-based private equity firm Istithmar for about $945 million. The deal recently cleared antitrust hurdle.
(Reporting by Neetha Mahadevan in Bangalore)