Seagate Technology plc today announced that its Board of Directors has authorized the Company to repurchase up to $2.5 billion of its outstanding ordinary shares (the "April 2012 Authorization"). Seagate, as a result of the April 2012 Authorization and other current repurchase authorizations, currently has a total authorized unutilized capacity for repurchases of approximately $3.5 billion under these authorizations.
"The repurchase authorization reflects the confidence that the Board and the executive management team have in Seagate's ability to generate cash, while still investing in innovation and growth opportunities," said Steve Luczo, CEO of Seagate. "Importantly, it supports and is consistent with our ongoing focus on returning value to our shareholders."
Seagate expects to fund the share repurchase through a combination of cash on hand, future cash flow from operations and potential alternative sources of financing. The shares will be redeemed in such amounts as management deems appropriate in light of prevailing market and economic conditions, alternative uses of capital, regulatory requirements and other factors. In implementing its repurchase program, the Company may utilize a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions or by any combination of the foregoing. Purchases may be made on a case by case basis or on a non-discretionary basis in a manner designed to comply with the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934. All repurchases will be effected as redemptions in accordance with the Company's Articles of Association. The April 2012 Authorization does not obligate the Company to acquire any particular amount of ordinary shares and may be suspended or discontinued at any time at the Company's discretion.
As the Company will effect repurchases under the April 2012 Authorization, as under the current authorizations, by way of redemption in accordance with its Articles of Association, the Company is not required to post such redemptions to the Company's website.
In connection with the April 2012 Authorization, the Company also announced that it has terminated its Anti-Dilution Share Repurchase Program, previously authorized by the Board on January 27, 2010 and publicly announced on February 1, 2010.