Cboe Global Markets, Inc. announced today in Chicago that its Board of Directors have authorised the company to commence a new share repurchase program, in which it will repurchase up to an additional $250 million of its outstanding common stock.
The new buyback program is effective immediately and, according to the statement released by the exchange holding company, does not have an expiration date. Under the program, Cboe is permitted to purchase its shares through a variety of methods, such as in the open market or via privately negotiated transactions.
As of the 10th of June 2020, with the additional repurchasing of its own common stock, the US options giant has $347.6 million of availability remaining under its share repurchase program. Year to date up until the 10th of June, Cboe has repurchased 1.9 million of its own shares, for a total price of around $201.6 million.
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Commenting on the new share buyback program, Ed Tilly, Chairman, President and Chief Executive Officer, Cboe Global Markets said in the statement: “The capital allocation actions we have taken year-to-date, including our strategic acquisitions, share repurchase activity and increased share repurchase authorization, reinforce our capital allocation priorities of investing in the growth of our business, maintaining a strong and flexible balance sheet, and returning excess cash to shareholders through dividends and share repurchases.
“These actions also demonstrate our Board of Directors’ support and confidence in the company’s future cash flow generation capabilities.”
According to the statement from the US options company, the new program approved by the Board does not require the firm to repurchase its own stock at any specific time or situation.
In fact, the exchange operator said today that it will repurchase its shares depending on market conditions, share price, liquidity targets, regulatory requirements and other factors.