By P.R. Venkat
Meituan, a China-based shopping-and-delivery platform, plans to buy back its shares valued up to $1.0 billion, a day after announcing solid third-quarter results.
The company said shares will be repurchased from the open market starting Dec. 1.
The buyback would be made using current financial resources, the company said Wednesday. The move is aimed at boosting the value of its stock, which has fallen more than 40% this year.
Like many Chinese companies, Meituan, one of China’s largest internet companies by market capitalization, suffered because of a weak domestic economy, which hurt consumption and consumer confidence.
However, in the third quarter, the company’s on-year profit nearly tripled to over $500.0 million, with revenue hitting over $10.0 billion.
“The company believes that the share repurchase will demonstrate the company’s confidence in its business outlook and prospects and would, ultimately, benefit the company and create value for its shareholders,” Meituan said.
Write to P.R. Venkat at [email protected]
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