Shanda (SNDA) announced that its Board of Directors has approved a share repurchase program, effective October 2005.
Under the program, Shanda is authorized to repurchase up to $50 million worth of outstanding American
Depositary Shares (ADSs) representing the ordinary shares of Shanda from time to time over the next 12 months, depending on market conditions, share price and other factors, as well as subject to the relevant rules under US securities regulations.
Shanda says the share repurchases may be made on the open market, in block trades or otherwise and may include derivative transactions. The program may be suspended or discontinued at any time.
"The decision to initiate the share repurchase program illustrates the confidence we have in the long-term value of our company, and reiterates our commitment to maximizing shareholder returns," said Tianqiao Chen, CEO of Shanda. "The strong profitability of our business and our healthy balance sheet give us the flexibility to invest in a variety of avenues to drive value."
The share repurchase program will be funded by the company's available working capital. As of June 30, 2005, the company had cash, cash equivalents and marketable securities of approximately US$429 million.
As of September 30, 2005, the Company had approximately 71,315,208 outstanding ADSs representing 142,630,416 ordinary shares of Shanda.