Tencent Music Entertainment’s board of directors has approved a buyback plan that could see the company repurchase up to $400 million of its shares. The program relates to Class A ordinary shares in the form of American depository shares — equity shares of a foreign-based company, traded on a U.S. exchange — during a 12-month period that began on Sunday, Dec. 15.
The company said the proposed repurchases would be made “from time to time” through the open market, in private negotiations, in block trades or through “other legally permissible means” by accessing it existing cash balance.
In its most recent earnings disclosure, TME said the combined balance of its cash, cash equivalents and term deposits was $2.96 billion. Total revenues for the quarter ended Sept. 30 was $910 million, with an operating profit of $166 million.