Cooper Tire & Rubber Co.’s board of directors has increased and extended its share repurchase program by up to $300 million, through Dec. 31, 2019.
The $300 million replaces the $98 million remaining from the board’s authorization from a year ago. The increased authorization is approximately 15 percent of the current market capitalization, or Cooper Tire’s value based on the market price of its outstanding common stock.
Cooper will by shares “from time to time based on market conditions,” the company said Friday.
“The repurchased shares will be held in treasury and used for general corporate purposes,” the company said.
The repurchase program reflects the strength of Cooper’s business strategy and its finances, said Brad Hughes, chief executive officer.
“The consistent execution of our strategic plan and the structural improvement of our business model over the past several years have put Cooper in a very strong financial position, and we continue to deliver on opportunities to profitably grow our business,” Hughes said. “Our increased and extended share repurchase program demonstrates our confidence in the Cooper business model and our commitment to continuing to deliver value to shareholders.”