Accelerated Share Repurchase (ASR)
A structured buyback transaction in which a company immediately repurchases a large block of shares from an investment bank.
What is Accelerated Share Repurchase?
An accelerated share repurchase (ASR) is a transaction in which a company pays an investment bank upfront for a large block of its own shares, receiving most of the shares immediately while the bank hedges by purchasing them in the open market over a defined contract period. The final share count delivered is adjusted based on the volume-weighted average price (VWAP) over the contract term: if the bank acquired shares more cheaply than anticipated, additional shares are delivered; if more expensively, the company receives fewer. ASRs provide faster EPS accretion and a larger immediate reduction in share count than gradual open-market repurchases, and signal management confidence in the company's intrinsic value.
Example
During FY2023, Apple Inc. executed multiple accelerated share repurchase agreements as part of its $90 billion share repurchase authorization. In its Q4 FY2023 10-K, Apple reported retiring shares via ASR programs alongside open-market repurchases, resulting in a total of $76.6 billion in share repurchases for the fiscal year—the company's largest buyback in history at the time.
Source: Apple Inc. 10-K FY2023