CoreLogic paid $75.8 million on Monday to repurchase 4 million shares of its common stock from its former parent company, First American Financial Corp., according to Securities and Exchange Commission disclosures.
The repurchase reduces the stake that First American Financial Corp. has in its former subsidiary by 31% and netted the company nearly $770,000.
CoreLogic was spun off from First American into its own publicly traded firm in June 2010. In the spin-off, First American acquired more than 12.9 million shares of CoreLogic stock valued at $18.76 per share. In Monday’s deal, CoreLogic paid $18.95 per share, a “spot market price” on April 5, when the two companies entered into the purchase agreement, the SEC filing said.
First American Title Insurance Co., a wholly owned subsidiary of First American, was the listed seller. First American must divest itself of all its shares in CoreLogic no later than June 1, 2015 or pay additional taxes related to the spin-off.
In its 2010 annual report, CoreLogic said it had 115.6 million shares outstanding on March 7, giving First American an 11% stake in the company after the repurchase.
CoreLogic’s stock opened trading at $17.81 Friday.
