Taiwan-based Largan Precision Co., one of the world's leading manufacturers of smartphone camera lenses, including for iPhones, announced on Monday that it will buy back 1.342 million of the company's shares in the coming two months to prop up its share prices and protect shareholders' rights.
Largan made the announcement following a board of directors meeting earlier in the day, in which it decided to repurchase 1.342 million shares at a price range of NT$2,025 (US$73) to NT$3,300 starting on Tuesday.
The share buyback scheme is estimated to cost Largan up to NT$4.4 billion, the largest amount a Taiwan-listed company has ever spent for this purpose. It also marks the first time for a Taiwan-based company to repurchase its own shares at a price above NT$2,000 per share.
In the meeting, it was also decided that the company would dole out NT$31 in cash dividend per share for the first half of the year -- or 50.3 percent of its earnings per share, which stood at NT$61.69.
The share price of Largan, once the most expensive in the local bourse, peaked at NT$6,000 on Aug. 24, 2017.
With its revenue continuing to decline in the past two years, its share price has significantly dropped.
Since October, Largan stock prices have dipped below NT$2,000 several times, prompting CEO Adam Lin (???) to reveal in a recent investors' meeting that the company was poised to buy back its own shares for the first time to yield higher cash dividend and protect shareholders' rights.
On Monday, Largan finished slightly down at NT$2,015 per share.
Source: Focus Taiwan News Channel