FINDLAY, Ohio—Cooper Tire & Rubber Co.'s board of directors has authorized the repurchase of up to $200 million of the company's outstanding common stock, which will be held in treasury and used for “general corporate purposes.”
The program runs through the end of 2016, Cooper said, with shares' being repurchased from time to time based on market conditions and executed through open market purchases, privately negotiated purchases or otherwise.
Based on the closing price of $37.17 on Feb. 19, Cooper's $200 million budget would represent about 5.3 million shares. Cooper said there are about 57.4 million outstanding common shares.
Cooper repurchased 6.4 million shares from mid-2014 through last year at an average price of $31.49 per share in an accelerated share repurchase program.
“Entering into a new share repurchase program demonstrates our continuing commitment to our overarching goal of delivering value to shareholders,” said Roy Armes, Cooper chairman, CEO and president.
“Our strong balance sheet allows us to return cash to shareholders through share repurchases and our quarterly dividend, invest in our worldwide growth opportunities, and meet our other obligations,” he added.
Cooper's cash on hand was boosted by about $56 million in the fourth quarter from the proceeds of the sale of its 65 percent stake in Cooper Chengshan (Shandong) Tire Co. Ltd.
All or part of the repurchases may be implemented under Rule 10b5-1 trading plans, Cooper said, which allow repurchases under pre-set terms when the company might otherwise be prevented from doing so.