Cooper Tire to purchase up to $200 million more of own shares
The Board of Directors at Cooper Tire & Rubber Company has authorised the repurchase of up to US$200 million of the company’s outstanding common stock between now and 31 December 2016. The tyre maker says shares “will be repurchased from time to time, based on market conditions and will be executed through open market purchases, privately negotiated purchases or otherwise.”
All or part of the repurchases may be implemented under the United States Securities and Exchange Commission’s Rule 10b5-1 trading plans, which allow repurchases under pre-set terms when the company might otherwise be prevented from doing so. The repurchased shares will be held in Treasury and used for general corporate purposes.
Cooper Tire recently completed a $200 million accelerated share repurchase programme announced in August 2014. Under that programme, the company bought approximately 6.4 million shares at an average price of $31.49 per share. As of 19 February 2015, Cooper had approximately 57.4 million outstanding common shares.
“Entering into a new share repurchase program demonstrates our continuing commitment to our overarching goal of delivering value to shareholders,” commented Roy Armes, Cooper’s chairman, chief executive officer and president. “Our strong balance sheet allows us to return cash to shareholders through share repurchases and our quarterly dividend, invest in our worldwide growth opportunities, and meet our other obligations.”