Tencent Music has announced its biggest $1 Billion Share Buyback Program
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Just recently, Tencent Music has made a huge announcement for the followers and stakeholders at the company. The Music Entertainment Group has announced that it is planning to buy back shares on Monday, March 29, 2021. The company has revealed that the buyback of the shares will be worth up to $1 billion.
It has been confirmed that the company has decided to go with the buyback as a result of the huge downfall it experienced last week with respect to its shares.
It is being expected that the process of the re-purchasing of the stocks would commence from Monday, March 29, 2021 and would last until 12 months.
Tencent Music is the arm dealing with online music for Tencent, which is a technology giant in China. Tencent is prominently known for running major services and applications that include streaming services.
Tencent Music is currently listed on one of the top stock exchanges in the United States, New York Stock Exchange (NYSE). The company reportedly ended up experiencing a downfall with respect to its stock prices. Economic analysts have revealed that the company has ended up losing a third of if its value. This much downfall was experienced by Tencent Music only in a matter of a week last week.
Some analysts have attributed this downfall to the stock sell offs that are currently on the high for the Chinese Technology companies.
Another factor that has been recently passed by the Securities and Exchange Commission of the United States. According to the new rule, any foreign/international company that fails to pass the new audit rules will be de-listed from the US stock exchange list.
However, majority of the pressure was observed on Friday, March 26, 2021, a major capital management firm known as “Archegos Capital Management” went through position liquidations.
It has been revealed that the position liquidation was enforced onto the Archegos Capital Management. The position liquidation was enforced for the major Chinese companies that belong to the technology sector.
Tencent Music has confirmed that the shares it plans on re-purchasing will be the Class A ordinary shares. The company will be re-purchasing these shares in the form of depositary shares.
The chairman of the Tencent board, TongTao Sang talked about the recent step that Tencent Music has made for re-purchasing the shares. Sang stated that the board of the company is fully confident over the business outlook and long-term strategy of the company.
The confidence of the board and the company’s executives is the very reason why they have supported the new Share Repurchase Program.
Sang stated that they are confident about the success of Tencent Music Entertainment (TME) and know that the company will be achieving new heights in the coming years.
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