Taiwanese smartphone maker HTC says its board of directors has authorised a share repurchase programme to restore investor confidence and increase shareholder value.
A statement notes the initiative will run over two months and comprises the buy-back of up to 50 million shares, which represent approximately 6% of the company's outstanding shares.
The value of the shares is expected to amount to $60 million.
HTC says the repurchase of the shares represents a significant return to investor share capital, and reiterates the strength of the company's balance sheet and financial flexibility.
"I welcome this opportunity to enhance shareholder value utilising a relatively small proportion of our balance sheet," says Cher Wang, chairperson and CEO of HTC.
Wang adds: "The programme reflects our board's belief in our ability to execute across our diversification strategy, having put the right structure and procedures in place to pursue sustainable, profitable growth.
"I am excited about all the opportunities ahead in smartphones, virtual reality and connected devices, and remain committed to building the HTC of the future."
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