STMicroelectronics N.V. (NYSE: STM) fell in late Monday trading after the company reported the launch of a $750-million share buyback program.
The program is to be executed within a three-year period (subject to shareholder and other approvals from time to time). The company held, as of October 31, approximately 8.6 million Treasury Shares, representing approximately 0.9% of its issued share capital.
STM will appoint one or more brokers to execute the share buyback program in accordance with all applicable regulations. The brokers will make their decisions relating to the purchase of Company shares independently, including with respect to the timing of any purchases, and all purchases effected will be in compliance with daily limits on prices and volumes.
The Company's closing share price on the New York Stock Exchange last Friday was $15.81 and, at such price, the maximum number of shares that could be acquired for $750 million would be approximately 47 million, which represents approximately 5.2% of the Company's issued share capital.
Purchases of shares will be made on one or more trading venues, which may include the regulated market of Euronext Paris, the Mercato Telematico Azionario organised and managed by Borsa Italiana S.p.A. and the New York Stock Exchange.
STM is a global semiconductor leader delivering intelligent and energy-efficient products and solutions that power the electronics at the heart of everyday life.
Shares in the company dipped 60 cents, or 3.8%, to $15.21.
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