Visteon Corporation (NYSE: VC) today announced that the company’s board of directors has reauthorized the company’s current $100 million share repurchase program and increased the repurchase amount to include an additional $200 million worth of its common shares over the next two years.
This action creates a total of $250 million available with which to repurchase shares, as the company has already repurchased $50 million worth of its common shares since the initial share repurchase program was authorized in August 2012. This creates a total share repurchase program of $300 million.
“The actions we took during the fourth quarter of 2012 to repurchase stock, redeem $50 million of the company’s bonds and reduce our pension benefit obligation represent our commitment to value-creating uses of cash,” said Tim Leuliette, president and CEO of Visteon. “Going forward, we expect that our increased share repurchase program, restructuring and operational improvements, and other value-enhancing actions will join to further improve total return to shareholders.”
Shares would be repurchased from time to time in open market transactions or in privately negotiated transactions depending on market and economic conditions, share price, trading volume, alternative uses of capital and other factors. Such purchases will be made in accordance with applicable U.S. securities laws and regulations. The company expects to complete the total repurchase program by January 1, 2015.
