Netease.com (NTES) has approved a new share repurchase program of up to US$100 million of the company's outstanding American Depositary Shares for a period not to exceed six months.
The new authorization follows Netease's completion of a share buyback program previously announced on May 18, 2006 pursuant to which approximately 2.4 million of the company's issued and outstanding ADSs were purchased for an aggregate purchase consideration of US$50.3 million.
Under the terms of the approved program, Netease may repurchase its issued and outstanding ADSs in open-market transactions on the NASDAQ Global Select Market. The timing and dollar amount of repurchase transactions will be subject to Securities and Exchange Commission (SEC) Rule 10b-18 requirements.
It is also expected that such repurchases will be effected pursuant to a plan in conformity with SEC Rule 10b5-1. Netease plans to fund repurchases made under this program from available working capital.