CDC Corporation (CHINA) has announced plans to split its divisions into separate businesses and to continue to build shareholder value.

This week the company announced that it has just repurchased 6,051,124 common shares, up from 4,430,658 common shares as of July 25, 2006, for a total of US$27,687,859 as part of the company's stock repurchase programs. The company completed its initial US$20 million repurchase program on August 10, 2006 and the additional US$20 million repurchase program announced on July 26, 2006 is now underway.

"The company's share repurchases demonstrate our strong confidence in the continued growth of our businesses and our future prospects," said Peter Yip, CEO of CDC Corporation. "We have been working closely with our financial advisors to expedite our efforts for the potential carve outs of CDC Games and CDC Software into standalone companies and to aggressively pursue financing options to expand our war chest to grow our businesses through multiple targeted acquisitions in the online games and enterprise software sectors."

CDC has also has entered into a 10b5-1 trading plan to facilitate the repurchase of its common shares during trading blackout periods through pre- arrangements with a broker based upon specified guidelines and parameters set forth in the trading plan.

Executives are continuing to explore the possibility of the separation of two of its business units into stand-alone companies in its efforts to unlock shareholder value and it is also pursuing various alternatives to enhance liquidity as part of its strategic plans to significantly expand the businesses through targeted acquisitions and vigorous organic growth.

LEAVE A REPLY

Please enter your comment!
Please enter your name here