Discover Rambus Inc.'s Bold $100 Million Stock Repurchase Move, Reinforcing Confidence in Future Growth and Shareholder Value
Rambus Inc. (RMBS), a leading chip and silicon IP provider specializing in enhancing data speed and security, has announced the commencement of an accelerated share repurchase program in collaboration with Royal Bank of Canada. The program entails the repurchase of approximately $100 million worth of Rambus common stock, reaffirming the company's strategic capital allocation approach.
Luc Seraphin, the President and CEO of Rambus, highlighted the significance of this program, stating, "This program is part of our strategic approach to capital allocation and demonstrates our confidence in the long-term growth of the company." The move not only underscores Rambus' optimistic outlook for its future performance but also emphasizes the company's dedication to maximizing shareholder value.
To facilitate the accelerated share repurchase program, Rambus has teamed up with Royal Bank of Canada, utilizing RBC Capital Markets, LLC as its agent. The initial phase involves pre-paying $100 million to Royal Bank of Canada, resulting in an initial delivery of approximately 1.6 million shares of Rambus common stock within the program's first week.
The final number of shares to be repurchased under this program will be determined based on the volume-weighted average price of Rambus common stock during the transaction period, minus a discount. This flexible structure allows Rambus to optimize its repurchase strategy according to market conditions. The program is projected to conclude by the end of the third quarter of 2023, providing the company with a well-defined timeline to execute the repurchases.
It is important to note that this accelerated share repurchase program is an extension of Rambus' broader share repurchase initiative, which had been previously sanctioned by the Rambus Board of Directors. This program reaffirms the company's commitment to its shareholders by effectively utilizing its robust balance sheet and strong cash generation to enhance stockholder value.
Rambus Inc.'s recent announcement of the $100 million accelerated share repurchase program, conducted in collaboration with Royal Bank of Canada, exemplifies the company's confidence in its future growth prospects and dedication to providing value to its stockholders. This strategic move not only reinforces Rambus' commitment to optimizing capital allocation but also highlights its ability to leverage its financial strength for the benefit of its investors.
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