Dollar Tree (DLTR) said Thursday that several investment funds tied to Mantle Ridge are executing a secondary block trade to sell 12.8 million common shares.

The company will not issue any equity or collect any cash proceeds from the private sale and has agreed to buy back $500 million of its own shares from Goldman Sachs (GS) following the completion of the trade, the company said.

The company intends to cover the cost of the equity retirement using existing cash balances, it said.

Shares of the company were down more than 3% in Thursday premarket activity.