Keyuan Petrochemicals Announces Share Buyback Plan
OREANDA-NEWS. October 05, 2012. Keyuan Petrochemicals Inc. (OTCQB: KEYP), ("Keyuan" or "the Company"), announced its Board of Directors has authorized the repurchase of USD 2 Million of the Company's common stock up to USD 1.50 per share. The Company's common stock may be purchased from time to time in the open market or in privately negotiated transactions.
"We have a strong belief in our growth and the fundamental strength of our business model as our first half 2012 revenue benefitted from solid customer demand and the improvement of production efficiency," declared Mr. Chunfeng Tao, Chairman and Chief Executive Officer of Keyuan Petrochemicals Inc. "We believe Keyuan's core earnings potential will continue to improve with engagement in Research Institutes, a series of initiatives on major projects and our SBS facility ramping into commercial production and that our stock represents an attractive value."
The timing and amount of any shares repurchased will be determined by the company's management based on its evaluation of market conditions and other factors. Repurchases may also be made under a Rule 10b5-1 plan, which would permit shares to be repurchased when the company might otherwise be precluded from doing so under insider trading laws. The repurchase program may be suspended or discontinued at any time. Any repurchased shares will be available for use in connection with its stock plans and for other corporate purposes.
Keyuan will fund the share repurchases from cash on hand. As of June 30, 2012, the company had approximately USD 250 million of cash and equivalents and approximately 58 million shares of common stock and 5.33 million shares of Series B Preferred stock outstanding.
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