Cooper Tire & Rubber Co. will buy back its own shares
13 march 2015
The Board of Directors of Cooper Tire & Rubber Co has discussed and decided to buy back its own shares worth $200 million. All shares will be used for general corporate purposes. The acquisition of shares is planned until the end of 2016 through negotiations with major shareholders or purchases on the open market.
Based on the stock price announced on 02/19/15 of $37.17, the budget of $200 million will be enough to buy around 5.3 million shares. The company's management states that the acquisition of securities will not be problematic, since more than 57.4 million shares are in free circulation.
It is worth noting that this is not the first case in the company's practice. Since the middle of last year, about 6.4 million shares have already been acquired under a special accelerated buyback program. The average cost of one share was $31.49.
According to the head of the company, Roy Armes, the strong market position allows the company to return the funds invested in its development by shareholders, while investing in the development of the company, strengthening its position in the global market, as well as investing in the fulfillment of its obligations.
Analysts note that the company's liquidity was well replenished at the end of last year, when Cooper Tire & Rubber Co sold its 65% stake in the joint venture Cooper Chengshan Tire Co., Ltd. The share buyback process will be well planned and implemented within the specified timeframe, so nothing will hinder the achievement of this goal.
Based on the stock price announced on 02/19/15 of $37.17, the budget of $200 million will be enough to buy around 5.3 million shares. The company's management states that the acquisition of securities will not be problematic, since more than 57.4 million shares are in free circulation.
It is worth noting that this is not the first case in the company's practice. Since the middle of last year, about 6.4 million shares have already been acquired under a special accelerated buyback program. The average cost of one share was $31.49.
According to the head of the company, Roy Armes, the strong market position allows the company to return the funds invested in its development by shareholders, while investing in the development of the company, strengthening its position in the global market, as well as investing in the fulfillment of its obligations.
Analysts note that the company's liquidity was well replenished at the end of last year, when Cooper Tire & Rubber Co sold its 65% stake in the joint venture Cooper Chengshan Tire Co., Ltd. The share buyback process will be well planned and implemented within the specified timeframe, so nothing will hinder the achievement of this goal.