China Nepstar Chain Drugstore Announces Share Repurchase Program
SHENZHEN, China, Aug. 23, 2011 /PRNewswire-Asia-FirstCall/ -- 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.
Mr. Simin Zhang, Chairman of Nepstar commented, "The share repurchase program illustrates our confidence in the long-term growth of our company and our commitment to returning capital to our shareholders. Our strong balance sheet presents us the flexibility to invest in a variety of avenues to enhance shareholder value."
About China Nepstar Chain Drugstore Ltd.
China Nepstar Chain Drugstore Ltd. (NYSE: NPD ) is China's largest retail drugstore chain based on the number of directly operated stores. As of June 30, 2011, the Company had 2,511 sto