CDC Corp. has announced that as of May 24, 2007, the company has repurchased an additional 505,018 common shares at an average price of $8.67 per share for a total of $4,379,050 since the board of directors approved an additional share repurchase program on May 2, 2007. The additional share repurchase program added $20 million to the original program for a total of $60 million of the company's common shares authorized for repurchase, until May 2008 at the discretion of senior management. Since the beginning of the share repurchase program on May 2, 2006, the company has repurchased a total of 7,441,642 common shares at an average price of $5.37 per share for a total of $39,983,285, of the total $60 million authorized.
The company has entered into a 10b5-1 trading plan which facilitates the repurchase of its common shares and allows the company to repurchase shares during trading blackout periods through pre-arrangements with a broker, based upon specified guidelines and parameters set forth in the trading plan.
In addition to the share repurchase program, senior management of the company, including the chief executive officer, has purchased approximately 260,000 shares since May 2 at an average price of $8.60 per share, and a total of approximately 647,000 shares since January 1, 2007.
"We continue to believe that CDC is undervalued by the investment community," said Peter Yip, CEO, CDC. "Our continuing execution of the share repurchase program demonstrates our confidence in the business and our ability to continue growing both organically and through targeted acquisitions."
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