HTC to Repurchase 50 Million Shares from Investors
HTC Corporation today announced that its Board of Directors has authorised a share repurchase program to restore investor confidence and increase shareholder value.
The share repurchase program, which will run over the course of the next two months, comprises the buy-back of up to 50 million shares representing approximately 6 percent of the Company’s total outstanding shares. Based on today’s closing price, this will amount to around NT$2 billion (approx. US$ 60 million), though the total amount will be based on the final purchase price.
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.
“I welcome this opportunity to enhance shareholder value utilizing a relatively small proportion of our balance sheet,” said Cher Wang, Chairwoman and CEO of HTC. “The program reflects our Board’s belief in our ability to execute across our diversification strategy, having put the right structure and procedures in place to pursue sustainable, profitable growth. I am excited about all the opportunities
ahead in smartphones, virtual reality and connected devices, and remain committed to building the HTC of the future.”