Chinese online game company Giant Interactive (GA) has announced that its board of directors has approved a share repurchase program.
According to the program, Giant will repurchase USD150 million worth of its American Depositary Shares. The repurchases will be completed in the open market of New York Stock Exchange through negotiated transactions off the market, block trades or pursuant to a 10b5-1 plan. The time and scale of the repurchases will be decided by market conditions, the trading price and other factors such as the customary restrictions on share repurchases. Giant will implement the share repurchase in a manner that is consistent with the market conditions and the interest of its shareholders. The company's board of directors will regularly review the share repurchase program and makes adjustments of its terms and scale accordingly. The share repurchase program will be made with the available operating fund of Giant.
Shi Yuzhu, president and CEO of Giant, says that the board of directors' approval of the repurchase program reflects the company's commitment to increase the shareholder value and the current share price does not reflect the potential value of Giant' shares. Apart from the share repurchase program, the company will continue to implement its major growth plan and to extend its player base by enhancing the community and increasing players' loyalty.