Aug 13 2010
China Nepstar Chain Drugstore Ltd. (NYSE: NPD) ("Nepstar" or the "Company"), the largest drugstore chain in China based on the number of directly operated stores, today announced that its board of directors has authorized a share repurchase program. Under the terms of the approved program, China Nepstar may repurchase up to US$20 million worth of its issued and outstanding American Depositary Shares ("ADSs") from time to time over the next 12 months. The repurchases will be made on the open market at prevailing market prices or in block trades and 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 the ADSs, the nature of other investment opportunities presented to the Company, the Company's cash flows and expected cash flows, general economic conditions and other factors. The Company may effect buyback transactions pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The Company's board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size accordingly. Nepstar plans to fund repurchases made under this program from its available cash balance.
"We are initiating the share repurchase program to express management's strong confidence in the prospect of our ongoing strategic transition and the long-term value of our company," said Mr. Jason Wu, Acting Chief Executive Officer of Nepstar. "This repurchase program reflects our commitment to increasing shareholder value. Our strong balance sheet and cash generation capacity present us the flexibility to invest in a variety of avenues to drive value."
SOURCE China Nepstar Chain Drugstore Ltd.