- VNET Group (VNET, Financial) announces a share repurchase program of up to US$50 million in American depositary shares.
- The program will be executed over a 12-month period using existing funds and includes open market purchases and private transactions.
- Each ADS represents six Class A ordinary shares, and the company retains flexibility to modify or terminate the program.
VNET Group, Inc. (VNET), a leading data center services provider in China, has announced the authorization of a share repurchase program worth up to US$50 million. This strategic move reflects the management's confidence in the company's future growth prospects.
The share buyback will take place over a 12-month period and utilize the company's existing funds, showcasing its strong financial position. VNET may execute the repurchases through various means, including open market purchases, privately negotiated transactions, and block trades, depending on market conditions.
Each American depositary share (ADS) involved in the repurchase represents six Class A ordinary shares of the company. Repurchased shares might either be held as treasury shares or cancelled, according to the company's future strategies. The program is flexible, allowing VNET's management to modify, suspend, or discontinue it based on evolving market conditions and the company's discretion.
The inception of the program is contingent upon finalizing an agreement with qualified broker-dealers. The plan does not commit VNET to repurchase a specific number of shares, ensuring adaptability in execution. This initiative aligns with VNET's strategic capital allocation choices, potentially enhancing shareholder value by optimizing the company’s share count and market presence.
