Tencent Music Entertainment [NYSE: TME] declared the share buyback package of shares. The firm disclosed that it has been granted authorization by the Board of Directors of the firm. After getting the authorization, Tencent will buyback $1 billion of its Class A ordinary shares in the form of ADSs during a 12-month duration beginning on March 29, 2021.
Furthermore, Tencent Music revealed that in privately agreed deals the firm advocated buybacks may be made every once in a while, through open market trades at general market prices. The schedule and dollar amount of buyback deals will be dependent on SEC Rule 10b-18 and/or Rule 10b5-1 prerequisites.
Tencent Music Entertainment has disclosed that its board will assess the share buyback package occasionally. Additionally, it may also approve modification of its terms and size or postpone or terminate the package. The firm intends to finance the buyback program from its current cash balance.
Chairman of the Board of TME commented that the authorization by the board of this share buyback program demonstrates that the board has full faith in the business prospects of the firm and has complete faith in its long-term strategy.