SHENZHEN, China, Aug. 23, 2011 /PRNewswire-Asia-FirstCall/ —
China Nepstar Chain Drugstore Ltd. (NYSE: NPD) (“Nepstar” or
the “Company”), the largest drugstore chain in China based on the
number of directly operated stores, today announced that its board
of directors has authorized a share repurchase program. Under the
terms of the approved program, China Nepstar may repurchase up to
US$20 million worth of its issued and outstanding American
Depositary Shares (“ADSs”) from time to time over the next 12
months.
The repurchases will be made on the open market at prevailing
market prices or in block trades and subject to restrictions
relating to volume, price and timing. The timing and extent of any
purchases will depend upon market conditions, the trading price of
the ADSs, the nature of other investment opportunities presented to
the Company, the Company’s cash flows and expected cash flows,
general economic conditions and other factors.
The Company may effect buyback transactions pursuant to Rule
10b5-1 under the Securities Exchange Act of 1934, as amended. The
Company’s board of directors will review the share repurchase
program periodically, and may authorize adjustment of its terms and
size accordingly. Nepstar plans to fund repurchases made under this
program from its available cash balance.
Mr. Simin Zhang, Chairman of Nepstar commented, “The share
repurchase program illustrates our confidence in the long-term
growth of our company and our commitment to returning capital to
our shareholders. Our strong balance sheet presents us the
flexibility to invest in a variety of avenues to enhance
shareholder value.”
About China Nepstar Chain Drugstore Ltd.
China Nepstar Chain Drugstore Ltd. (NYSE:
NPD) is China’s largest retail drugstore chain based on the
number of directly operated stores. As of June 30, 2011, the
Company had 2,511 sto
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