-United Internet cancels treasury shares, to launch share buyback.
22 February 2011 - German online services provider United Internet AG (ETR:UTDI) announced today that it has decided to cancel a total of 15m treasury shares purchased in the course of share buyback programmes.
The move was approved by the general annual meeting on 2 June 2010.
Therefore, the company's equity capital will be reduced to EUR225m (USD348.8m) from currently EUR240m, United Internet said.
After the cancellation of the 15m treasury shares, United Internet will still hold 9m treasury shares, which correspond to 4% of the reduced equity capital of EUR 225m.
The capital reduction is expected to become effective as of 23 February 2011.
In addition, United Internet has resolved to launch a share buyback programme, according to which up to 4.5m shares will be repurchased via the stock exchange. This corresponds to 2% of the reduced capital stock of EUR225m, the company added.
The share buyback will be launched once the capital reduction becomes effective, United Internet said.
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