Aegion Corporation Announces New $5M Share Repurchase Plan
Aegion Corporation (Nasdaq: AEGN) today announced that its Board of Directors has authorized a new program to repurchase up to $5.0 million of the Company's common stock during the 2013 calendar year. Through previous share repurchase programs initiated in 2011 and 2012, the Company repurchased 908,725 shares of the Company's common stock for $15.0 million, or an average price of $16.51 per share. The amounts previously repurchased constituted the maximum that Aegion was permitted to repurchase in any calendar year under the terms of its amended credit facility.
Aegion has engaged Merrill Lynch, Pierce, Fenner & Smith as its exclusive broker to execute its stock purchase program under a trading plan that has been established in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. Rule 10b5-1 permits Merrill Lynch to continue to purchase shares on Aegion's behalf even during periods when Aegion is in possession of undisclosed earnings or other material, non-public information about the Company pursuant to pre-arranged parameters instituted during an open window period. Repurchases can be made on the open market or otherwise. The plan is effective until December 31, 2013 or, if earlier, upon the repurchase of $5.0 million of the Company's common stock under the plan. Pursuant to the terms of the trading plan, stock repurchases may be initiated on the first trading day in the 2013 calendar year.
J. Joseph Burgess, President and Chief Executive Officer of Aegion, said, “This share repurchase program reflects our continued commitment to utilize excess cash to enhance stockholder value, providing the Company an opportunity to repurchase shares at prices we continue believe are attractive.”
The new stock repurchase plan will be effected in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, which includes certain restrictions including one with respect to the number of shares that may be purchased in a single day (subject to certain exceptions for block purchases) based on the average daily trading volume of the Company's shares on the Nasdaq Global Select Market during the four calendar weeks preceding the week in which a purchase is to be effected.
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