Yonyou Software Co., Ltd. closed an Equity Buyback in the amount of CNY200 mm
January 08, 2013 at 04:00 am
Share
The Board of Directors of Yonyou Software Co., Ltd. (SHSE:600588) authorized a share repurchase program on December 4, 2012. Under the plan, the company will repurchase up to 17,889,087 shares, representing 1.83% of its issued share capital, at a price of CNY 11.18 per share and for the total amount of up to CNY 200 million worth of its Class A common stock. The company will repurchase the shares through centralized price bidding. The company will make repurchases from the Shanghai Stock Exchange. The company will cancel the repurchased shares and thereby reduce its registered capital. The program will be funded using the company's own funds. The purpose of the plan is to protect the interests of the company's shareholders, to enhance investor confidence, to maintain the company's share price, considering market conditions, the company's financial position, future developments and other factors. The plan is subject to approval from its shareholders in the 2nd special shareholders' meeting to be held on December 20, 2012. The plan is expected to complete within 6 months from the approval at shareholders' meeting.
On December 20, 2012, the plan was approved by the shareholders. Tianyuan Law Firm acted as the legal advisor to the company.
Yonyou Software Co., Ltd completed the share repurchase program on January 8, 2013. Under the program, the company has repurchased 19,837,802 shares, representing 2.03% for CNY 200 million.
Yonyou Network Technology Co., Ltd. is specialized in the development and manufacturing of management software products. These products are used for enterprise resource planning, human resource management, office automation, customer relationship management, product lifecycle management, etc. Net sales break down by activity as follows:
- services (69.1%): maintenance, technical support, consulting, and training services;
- sale of licenses (29.6%);
- other (1.3%).
China accounts for 98.4% of net sales.