Athens: Nordic American Offshore (NAO) is planning a share repurchase programme through which the NYSE-listed company will buy back up to 2.5m shares in outstanding common stock over the next two years.
There are currently 23,431,370 NAO shares outstanding.
At the time of writing, the stock is currently trading at around $8.68 per share; at this price, a purchase of 2.5m shares is worth around $21.7m.
The programme has been authorised by NAO’s board of directors and is effective immediately.
“The authorisation of this stock repurchase program is a tool to promote the interests of shareholders,” said Herbjorn Hansson, NAO’s executive chairman.
NAO says it will repurchase shares from time to time for cash in open-market transactions or in privately-negotiated transactions “in accordance with applicable federal securities laws”.
The timing and the amount of any repurchases will be determined by NAO’s management and board, based on its evaluation of market conditions, capital allocation alternatives, and other factors.