Cooper Tire & Rubber Co. today announced that it has entered into an accelerated share repurchase program with J.P. Morgan Chase Bank, N.A.
Under the agreement, Cooper Tire will repurchase $200 million of its common stock. Cooper will receive about 80 percent of the number of shares to be repurchased at the start of the repurchasing program, or about 5.6 million shares, based on the closing price on August 6, 2014. The total number of shares to be repurchased will be determined on final settlement.
The repurchase program is scheduled to run from today until February 2015, and may be shortened at the option of J.P.
Morgan. As of July 31, Cooper had about 63.6 million outstanding common shares.
“Cooper is in a strong financial position, and the accelerated share repurchase demonstrates our commitment to continuing to deliver value to shareholders,” said Roy Armes, chief executive officer of Cooper Tire. “Our board also declared Cooper’s 170th consecutive dividend yesterday, and we intend to continue to invest in important growth opportunities to provide increased shareholder value over the long term.”