(By Balaseshan) Renren Inc. (NYSE: RENN), which operates real name social networking Internet platform in China, said its board of directors has authorized the renewal of share repurchase program for another 12 months.
During this 12-month period from January 1, 2013 to December 31, 2013, Renren is authorized, but not obligated, to repurchase up to $48.2 million of its American Depositary Shares (ADS), representing the balance of its share repurchase plan that ended in September this year.
Renren expects to implement this share repurchase program in a manner consistent with market conditions and the interest of its shareholders.
The company said its board of directors will review the share repurchase program periodically and may authorize adjustment of its terms and size.
Renren intends to fund repurchases made under this program from its available cash balance. Under the original share repurchase program of $150 million, the company had repurchased 24.2 million ADS in total for an aggregate consideration of $101.8 million.
"We are on track in executing this strategy, supported by our innate opportunities in online gaming, social commerce, communications and entertainment services. Our healthy balance sheet thus provides us the flexibility to invest in both our future growth and return value to shareholders," said Joseph Chen, Chairman and Chief Executive Officer.
The company's platform enables its users to connect and communicate with each other, share information and user-generated content, play online games, listen to music, shop for deals and a range of other features and services.
RENN closed Monday's session down 2.07% at $3.31. The stock has been trading between $3 and $7.87 for the past 52 weeks.