NEW YORK, Sept 20 — Nike Inc is beefing up its capacity to use its cash to purchase its own shares, with the board of the world’s largest sportswear maker approving an US$8 billion buyback programme.
The new US$8 billion (RM25 billion) four-year repurchase programme for Nike’s class B stock will follow the company’s current US$5 billion buyback plan once that programme is completed during the second quarter of next year’s fiscal, Nike said yesterday.
“Over the past 10 years, Nike has returned US$10 billion to shareholders through the repurchase of more than 167 million shares,” said chief executive Mark Parker, adding that share buybacks are a prudent use of Nike’s cash.
Nike has a market value of US$44 billion based on its closing share price yesterday of US$97.66 and its 453.87 million shares outstanding.
Another US company, CVS Caremark, also announced a big USUS$6 billion share buyback programme yesterday. — Reuters