HTC to buy back US$60 mil­lion in shares af­ter stock falls fur­ther

The China Post - - LOCAL -

Tai­wanese smart­phone maker HTC Corp. ( an­nounced Mon­day that its board of di­rec­tors has au­tho­rized a share re­pur­chase pro­gram to re­store in­vestor con­fi­dence and in­crease share­holder value af­ter the stock plunged to an all time low.

The share re­pur­chase pro­gram, which will run over the course of the next two months, will con­sist of buy­ing back up to 50 mil­lion shares rep­re­sent­ing ap­prox­i­mately 6 per­cent of the com­pany’s to­tal out­stand­ing shares, HTC said in an e-mailed state­ment.

Based on Mon­day’s clos­ing price, the share buy­back pro­gram will amount to around NT$2 bil­lion (US$60 mil­lion), though the ac­tual to­tal will de­pend on the fi­nal pur­chase price, ac­cord­ing to the com­pany.

HTC said the re­pur­chase of up to 6 per­cent of to­tal shares out­stand­ing rep­re­sents a sig­nif­i­cant re­turn to in­vestor share cap­i­tal, and re­it­er­ates the strength of the com­pany’s bal­ance sheet and fi­nan­cial flex­i­bil­ity, at a time when the share price does not re­flect the in­trin­sic value of the com­pany.

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