One of the leading names in China’s online social networking platforms, Renren Inc, (NYSE: RENN) announced on Friday that its Board of Directors has approved a new share buyback program.
The Company said that its Board endorsed but not obligated to buyback American Depository Receipts upto US$ 100 million within one year, starting from June 28, 2013.
The new shares repurchase program replaces previous $150 million ADR buyback plan, which was announced on September 29, 2011. That program is near completion.
The buyback of shares can be carried through open market at existing market prices, according to the Rule 10b5-1 and/or 10b-18 plans, in mutually agreed deals, block trades or in other ways depending on the market conditions but allowed under rules and regulations.
The Company said that it will implement its share buyback program in a way which will be consistent with the market conditions and at the best interest of its shareholders.
Renren said that it Board will assess the share repurchase program at regular intervals and may suggest changes in its terms and scale. The Company intends to fund the share repurchase program from its cash balance.
Commenting over the share repurchase plan, Renren Chairman and Chief Executive Officer Joseph Chen said, “We continue to focus on our long-term strategy of building a sustainable business around mobile-centric social networking. As we are close to fulfilling our previous repurchase plan, this announcement shows our full commitment to creating value to our shareholders.”
The Beijing, China-based Company is one of the leading names in the online social networking platform in China.
Renren platform allows users to connect with each other, just like Facebook Inc. (NASDAQ: FB) and chat with each other, share posts, play online games, listen music, search and shop for deals, play videos among some other exciting features.
As of March 31, 2013, Renren.com had about 184 million activated users.