FINDLAY, Ohio (Aug. 8, 2014) — Cooper Tire & Rubber Co. is planning to repurchase about 5.6 million shares in order to “deliver value to shareholders,” according to Chairman, CEO and President Roy Armes.
To effect the buyback, Cooper will participate in an accelerated share repurchase (ASR) program with J.P. Morgan Chase Bank N.A., which calls for Cooper to repurchase an aggregate of $200 million worth of its common stock, the company said.
As of July 31, Cooper said there were approximately 63.6 million outstanding common shares in circulation. Shares closed Aug. 6 at $29.28, according to Cooper, and have traded in a range from $20.55 to $34.17 in the past 52 weeks.
The Findlay-based tire maker will receive about 80 percent of the number of shares to be repurchased at the inception of the ASR program, or roughly 5.6 million shares, based on the closing price on Aug. 6, 2014.
The number of shares to be repurchased will be determined on final settlement, Cooper said, and will be based primarily on the volume-weighted average price of Cooper’s common stock during the term of the ASR, less a discount and subject to certain adjustments.
The ASR is scheduled to run Aug. 7, 2014, until February 2015, and may be shortened at the option of J.P. Morgan.
“Cooper is in a strong financial position, and the accelerated share repurchase demonstrates our commitment to continuing to deliver value to shareholders,” Mr. Armes said.
“Our board also declared Cooper’s 170th consecutive dividend yesterday, and we intend to continue to invest in important growth opportunities to provide increased shareholder value over the long term.”
Titan International and the United Steelworkers union have petitioned the U.S. International Trade Commission and U.S. Department of Commerce seeking relief from OTR tire imports from China, India and Sri Lanka. What’s your opinion?
|I wholeheartedly support their action – something needs to be done.||
|I think it’s a bad idea that could inevitably tie the hands of domestic tire makers.||
|I oppose any duties against tire importers—they only raise costs for distributors and make it harder to obtain inventory.||
|I’m kind of on the fence and not sure what’s right, but need more information before deciding.||
|I don’t really care whether or not relief is granted.||
|Total votes: 78|