China's Focus Media (FMCN) says its board of directors has approved a share repurchase program to repurchase up to USD100 million worth of its issued and outstanding American depositary shares.
Tan Zhi, chief executive officer of Focus Media, stated, "Our board's approval of the share repurchase program reflects our commitment to increase shareholder value and our confidence that the current ADS price level does not reflect our potential value."
Focus Media says it expects to implement this share repurchase program over the course of the next 12 months, effective immediately, in a manner consistent with market conditions and the interest of the shareholders. Focus Media's board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size accordingly. Focus Media plans to fund repurchases made under this program from its available cash balance.
The repurchases will be made from time to time on the open market at prevailing market prices or in block trades. The purchases will be made subject to restrictions relating to volume, price and timing. The timing and extent of any purchases will depend upon market conditions, the trading price of its ADSs and other factors.