Universal Entertainment Corp. is going to buy back some of its issued stock. According to a filing with the Jasdaq Securities Exchange last Friday, the gaming company will spend about $17.8 million to purchase the shares in order to convert them into treasure shares. The buyback is scheduled to take place between yesterday and December 28.
Universal will purchase 600,000 common stock shares, or about 0.75% of the outstanding amount. The action will “enable the execution of flexible capital policies that accommodate the reinforcement of the return of profits to shareholders and changes in the company’s operating environment.”
According to the filing, the initial buyback will be followed by “active, ongoing implementation of measures for the return of profits to shareholders based on its financial status and trends in securities markets.” Continued expansion of the company’s treasury stock holdings will take place as executives see fit.
As of September 30, Universal had 79,247,284 common shares still outstanding. Stocks in treasury shares were reportedly 947,716.