Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) today announced that it will buy back up to $3 billion in shares. At the current share price, the amount equals about 8% of Teva's outstanding shares.
Teva said that the purchases will be made from time to time, based on market conditions, and that it expects to complete the buyback within three years. It will finance the purchases from its free cash flow, and there will be need to increase debt.
Teva president and CEO Shlomo Yanai said, "This share repurchase program reflects our confidence in the future outlook of our business and the company's long-term value. Furthermore, our strong cash flow enables us to return cash to our shareholders while preserving the ability to service our debt and continue to drive business growth."
Teva added that in the year through September 2011, it paid shareholders more than $2.5 billion through dividends, share repurchases and redemptions of convertible bonds.
Teva's share price rose 1.2% by mid-afternoon on the TASE today to NIS 161, after rising 1.5% on Nasdaq yesterday to $42.34, giving a market cap of $37.5 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on December 21, 2011
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