VisionChina Media Inc., one of China’s largest digital out-of-home advertising networks on mass transportation systems, announced today that it is seeting out to buy back up to US$15 million of its own shares.
According to the announcement, the company’s board of directors has approved a share repurchase program, authorizing the company to repurchase up to US$15 million worth of its own American depositary shares (“ADSs”) by December 31, 2012.
The repurchases will be made from time to time on the open market or in block trades in accordance with the “safe harbor” requirements of Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended. The timing and extent of any repurchases under the share repurchase program will also depend upon market conditions, the trading price of the Company’s ADSs and other factors, according to the announcement. VisionChina Media expects to implement the share repurchase program in a manner consistent with the market conditions and in the best interest of its shareholders. VisionChina Media said it plans to fund the repurchases made under this program from its available cash balance.
“The board’s decision to repurchase VisionChina Media’s ADSs reflects our firm belief that our ADSs are significantly undervalued in the stock market,” said Limin Li, VisionChina Media’s chairman and CEO, in the announcement. “Having generated record high quarterly revenue in the second quarter of 2011 and building on the strong momentum of our growing operating results, we believe this repurchase program is in the best interest of VisionChina Media and our shareholders, and it demonstrates our continuing confidence in our company’s ongoing business growth and our commitment to delivering long-term shareholder value.”
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