Board of directors authorises $50m increase in existing program.
Signet Jewelers, the US-based parent company of the UK’s Signet Group – owner of H Samuel and Ernest Jones – has today announced that its board of directors has authorised a $50 million (£32m) increase in its share purchase program.
This will increase its existing program to repurchase Signet’s common shares to $350 million (£224m).
Mike Barnes, Signet’s chief executive, said: “The increase in our share repurchase authorization reflects our commitment to build value for long-term shareholders, the continued confidence we have in the strength of our business, and our ability to generate free cash flow after investment in our growth initiatives.”
The new authorization runs concurrent with the existing program, which authorized the repurchase of up to $300 million (£192m) common shares, and expires on January 15, 2014.
As of July 13 2012, prior to the increased authorization, approximately $20.1 million (£12.8m) remained available for repurchase under the existing program, as a result of having repurchased an aggregate of 6.2 million common shares at an average cost of $44.95 per common share. Signet currently has approximately 81.4 million shares outstanding.
The repurchase program is funded through the company’s existing cash balances. Repurchased shares may be used by the Signet for general corporate purposes.