01 September 2008

UMC To Buy Back Shares

UMC are planning to buy back 200 million shares between now and October. This follows TSMC's plan to buy back shares and recent insider trading accusations against a UMC executive. Trading Markets writes:

United Microelectronics Corp (UMC) (2303.TW) said it bought back 25.41 mln shares, or a 0.19 pct stake, at an average price of 13.13 twd per share from Aug 28 until today.

The repurchase was part of the wafer foundry's plan to buy back 200 mln of the company's common shares from the open market in the period from Aug 28 to Oct 27.


The 200 mln shares, to be bought at prices ranging from 9.31 twd to 21.05 twd, would represent 1.51 pct stake in the world's second-largest contract chipmaker.

This is one way for the company to return money to shareholders and also another way to keep their shares competitive. Right now UMC shares (2303.TW) are trading for NTD12.85 per share and are 36.23% down on the year so far.

Trading Markets: Taiwan's UMC buys back 25.41 mln shares at avg 13.13 twd

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