The Strategist announces buyback up to $1 bln

12/28/2018 - 10:42

Board of Directors of Chinese online retailer Inc. approved the company's share buyback program for up to $ 1 billion.

danicuki via flickr
danicuki via flickr
The buyback is planned to be funded by free cash that is available on the company's balance sheet.

ADR during pre-bidding in New York on Wednesday went up by 2.9%. Meanwhile, since the beginning of this year, their price fell by 52.3%, while the American Standard & Poor's 500 stock index dropped 12.1%, according to MarketWatch.

The cost of shares was adversely affected by the arrest of the company's chief executive officer Liu Qiangdong on charges of sexual harassment in the USA on August 31. The businessman, who is also known under the European name Robert Liu, was released the next day without bail and returned to China. At the same time, the company stated that the accusation was false. However, according to the Minnesota State Police, the case remains open and the investigation continues.

Liu Qiandun, who is now 45 years old, is one of the richest people in Asia (Forbes estimates his fortune at $ 10.8 billion). is the second largest online retailer in China after Alibaba Group Holding. The company was founded in 1998 as a DVD shop, and opened an online store in 2004.

The firm is actively investing in development of direct online sales business, adhering to a model similar to, as well as creates its own logistics network. In addition, is investing in partnerships with retailers selling luxury brands. In particular, the company has put some funds in Farfetch.