Taipei, July 18, 2011 (CENS)--To cushion impacts of the recent patent infringement dispute with Apple Inc. on its stock prices, HTC Corp., a Taiwan-based and world-level vendor of smartphones, has announced the implementation of buying back 20 million treasury stocks to sustain investors' confidence in its stock prices listed on the local bourse.
Apple filed a patent-infringement lawsuit with the United States International Trade Commission (ITC) against HTC last year, and ITC ruled on July 15 that the latter has violated of the former's patents. The ITC ruling will force HTC to freeze sales of its Android smartphones built with technologies allegedly infringing Apple's patents in the U.S. and may drive investors to dump the firm's shares in the coming months.
To minimize negative impacts on its share prices following the ITC ruling, the firm plans to buy out a total of 20 million treasury stocks at a price of between NT$900 and NT$1,100 per share starting from July 18 through September 17, in a bid to boost investors' willingness to hold the firm's shares and sustain its share prices.
Now that the buyback will cost HTC about NT$18 billion to NT$22 billion, institutional investors indicated, the firm, which is also scheduled to distribute cash dividends worth NT$34.1 billion, or NT$37 per share, on profits for 2010 on August 17, will have to spend over NT$56 billion worth of cash on the buyback and dividend distribution in the third quarter of this year.