Yirendai Ltd. (NYSE: YRD), a fintech company that’s based in China, announced on Monday its board of directors has approved a share repurchase program whereby Yirendai is authorized to repurchase its ordinary shares in the form of American depositary shares with an initial aggregate value of up to $20 million. While sharing more details about the program, Yihan Fang, CEO of Yirendai, stated:
“The implementation of a share repurchase program reinforces management’s confidence in our long-term growth prospects and our commitment to continually enhancing shareholder value. We believe that our strong cash position enables us to simultaneously return value to shareholders through our regular semi-annual dividends and our new share repurchase program. At the same time, we will continue to invest in our business operations to drive long-term growth.”
Yirendai reported that the proposed share repurchase may be affected on the open market at prevailing market prices, depending on a number of factors, including, but not limited to, share price, trading volume and general market conditions, along with the company’s working capital requirements, general business conditions and other factors, as well as subject to applicable rules and regulations, including requirements of Rule 10b5-1 and/or Rule 10b-18 under the Securities Exchange Act of 1934, as amended. Yirendai added that the board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size. Yirendai plans to fund the repurchases out of its existing cash balance or future cash provided by operating activities.