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

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

Taipei, Aug. 24 (CNA) 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.
"I welcome this opportunity to enhance shareholder value utilizing a relatively small proportion of our balance sheet," said Cher Wang, chairwoman and chief executive officer 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," she noted.
"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," Wang said in the statement.
HTC shares fell 9.43 percent on Monday to close at NT$40.35, the lowest since the company went public in March 2002. The stock has dropped about 97 percent since it peaked in April 2011 at NT$1,300 per share. (By Jeffrey Wu)


Updated : 2021-09-25 03:56 GMT+08:00