vested
Xiaomi buys back 16 million shares
by Gary Poon
Xiaomi (1810) has repurchased almost 16 million shares at a total of HK$1.6 billion last Thursday and Friday.
The company repurchased 6.14 million shares and 9.85 million shares on market at an average price of HK$9.76 per share and HK$10.2 per share on January 18 and 19 respectively.
The company said a share repurchase in the present conditions will demonstrate confidence in its own business outlook and prospects and would, ultimately, benefit them and create value for shareholders.
The board also believes that Xiaomi's current financial resources would enable it to implement the share repurchase while maintaining a solid financial position.
Xiaomi chairman Lei Jun said the company "will continue to provide amazing products with honest prices and is confident that such a value proposition will be even more compelling in current market conditions."
The block-out period of the first batch of employee options expired last Wednesday.
A total of 2.5 billion shares of employee options was issued and the cost of carrying is only HK2.7 or below per share. Cornerstone investors hold 250 million shares which they bought at around HK$17.
Bank of America Merrill Lynch earlier predicted Xiaomi's net profit would be at HK$8.3 billion and HK$11.8 billion in 2018 and 2019 respectively.
Xiaomi increased 1.38 percent to HK$10.3 yesterday.
Source: The Standard
http://www.thestandard.com.hk/section-n ... 0122&sid=2