The leading travel service provider of China, Ctrip.com International, Ltd. (Nasdaq: CTRP), announced that the board of the Company has approved a new share repurchase program.
SHANGHAI- Ctrip.com International, Ltd. (Nasdaq: CTRP) a leading travel service provider of hotel accommodations, airline tickets, packaged tours and corporate travel management in China, announced that the board of the Company has approved a new share repurchase program whereby Ctrip may purchase its own American depositary shares (“ADSs”) with an aggregate value of up to US$300 million.
The Company expects to fund the repurchase out of its existing cash balance, including cash dividends that it receives from its PRC subsidiaries. The dividends paid by the Company’s PRC subsidiaries to the Company through its Hong Kong subsidiary will be subject to a 5% PRC withholding tax amounting up to US$15 million, which will decrease the Company’s diluted consolidated earnings per ADS by about US$0.10 for the quarter affected.
Impact of the PRC withholding tax will be reflected in the Company’s 2012 second quarter financial results. The proposed share repurchase may be effected on the open market at prevailing market prices and/or in negotiated transactions off the market from time to time as market conditions warrant in accordance with applicable requirements of Rule 10b5-1 and/or Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended.
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