Wednesday, November 16, 2011

GT Advanced Technologies announces $100 million share buyback authorization

MERRIMACK, USA: GT Advanced Technologies Inc. announced its Board of Directors has approved an authorization to repurchase up to $100 million of the company’s common stock.

In addition to the share repurchase authorization, the company also indicated that it will pay an aggregate of approximately $75 million for an accelerated repurchase of GT shares on or around November 21, 2011. The $75 million is part of the $100 million share repurchase authorization.

The company will purchase the shares under the ASR arrangement on the basis of the volume-weighted average share price of GT common stock over a valuation period. The majority of the shares repurchased under the ASR are expected to be retired during the company’s fiscal 2012 third quarter ending December 31, 2011.

"We believe our shares are undervalued and that a repurchase makes good economic sense given the solid fundamentals and outlook of our business,” said Tom Gutierrez, president and CEO. “Our cash flows are strong and we remain confident in our ability to grow and invest in our core businesses and to continue to pursue other strategic growth opportunities."

Repurchases under the remaining $25 million portion of the authorization may be made from time to time through open market repurchases or privately negotiated transactions, as determined by the company's management. The repurchase authorizations do not obligate the company to purchase any stock and may be modified, suspended, or terminated at any time at the company's discretion.

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