Steel Dynamics Increases Share Repurchase Authorization
08/27/2008 - The Steel Dynamics Board of Directors approves a further increase of 10 million shares to the company’s existing share repurchase program.
Steel Dynamics Inc.’s Board of Directors has approved a further increase of 10 million shares to the company’s existing share repurchase program.
Since the July 29 authorization of an additional 5 million shares—which at the time increased the number of shares that could be repurchased to 8.9 million shares—the company has bought back 7.9 million of its shares. With the current addition, the company now has authority to continue purchasing up to another 11.0 million shares.
"This increase in authorized shares, on top of our recent strong share repurchase activity, is as clear an indication as our Board and management can give of our belief that our stock is significantly undervalued," said Keith E. Busse, Steel Dynamics Chairman and CEO. "We continue to believe that the purchase of our stock at these prices will deliver outstanding value to our stockholders and is one of the most appropriate uses of our resources at this time. Moreover, we believe that we can do this without sacrificing expansion, capital investment or growth plans."
Under its buyback program, the company makes purchases at its discretion in open market or private transactions, including transactions that may be effected pursuant to Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The share buyback program does not require the company to acquire any specific number of shares and the company may modify, suspend, extend or terminate the program at any time without prior notice.
