Magnachip Announces New $ 75 Million Share Buyback Program |
Seoul, South Korea, December 21, 2021 / PRNewswire / – Magnachip Semiconductor Corporation (“Magnachip Corp.” or the “Company”) (NYSE: MX), today announced that the Board of Directors has authorized the Company to repurchase up to $ 75 million ordinary shares of the Company. As an immediate step towards the implementation of the approved share repurchase program, the Company has entered into an accelerated share repurchase agreement (the âASR Agreementâ) with JPMorgan Chase Bank, National Association (âJPMâ) to repurchase a total of $ 37.5 million common shares.
Under the terms of the ASR agreement dated December 21, 2021, the Company will pay JPM $ 37.5 million in cash and will receive an initial delivery of approximately 1.0 million common shares of the Company. The final number of ordinary shares ultimately to be repurchased by the Company will generally be based on the average of the daily volume-weighted average prices of the ordinary shares of the Company during the evaluation period of the ASR Agreement, less a discount and subject to adjustments. Upon final settlement of the ASR Agreement, the Company may be entitled to receive additional ordinary shares of JPM or, in certain circumstances specified in the ASR Agreement, the Company may be required to deliver ordinary shares or perform a cash payment, at its discretion, to JPM. The ASR Agreement contains customary provisions for agreements of this type, including provisions for adjustments to the terms of the transaction, circumstances under which the ASR Agreement may be accelerated, extended or terminated earlier by JPM and various acknowledgments. , representations and warranties made by the parties to one another. The final settlement of the ASR deal is expected to take place in the fiscal quarter ending March, 31st, 2021.
âToday’s announcement reflects the confidence of the management team and our board of directors in the financial strength, long-term growth strategy and ability of Magnachip to generate sustainable cash flowâ , said YJ Kim, CEO of Magnachip. âIt is also in line with our commitment to improve and deliver value to our shareholders. Our business is built on strong long-term fundamentals and we are poised to accelerate our MX 3.0 strategy, which we look forward to articulating in more detail during our investor call. January 6, 2022. “
Investor conference call
Magnachip will host an investor conference call at 5:00 p.m. Eastern Time to January 6, 2022. The investor call will be webcast live and is also available by calling the toll-free number at 1-844-536-5472 in U.S/Canada. Participants in the international call can dial 1-614-999-9318. The conference ID number is 9163925. Participants are encouraged to place their calls at least 10 minutes before the start time to ensure a timely connection. A live, archived webcast of the call will be accessible from the âInvestorsâ section of the company’s website at www.magnachip.com. A replay of the conference call will be available until 8:00 p.m. ET on January 13, 2022. The replay call numbers are 1-404-537-3406 or toll free at 1-855-859-2056. The conference ID number is 9163925.
About Magnachip Semiconductor Corporation
Magnachip is a designer and manufacturer of analog and mixed semiconductor platform solutions for communications, IoT, consumer, industrial and automotive applications. The company supplies a wide range of standard products to customers all over the world. Magnachip, with over 40 years of operating history, has a portfolio of approximately 1,200 registered patents and pending applications, and has extensive expertise in engineering, design and manufacturing processes. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip’s website does not form part of this press release and is not part of it.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which are subject to the safe harbor thus created. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. These forward-looking statements are often, but not always, formulated using words or expressions such as “may”, “will”, “will”, “anticipate”, “estimate”, “plan”, “plan” , “” continue “,” in progress “,” expect “,” believe (s) “,” intend “,” predict “,” potential “,” future “,” strategy “,” opportunity “and similar words or phrases or the negatives of such words or phrases. Forward-looking statements involve inherent risks and uncertainties, and significant factors could cause actual results to differ materially from those anticipated, including, but not limited to: the impact of changes in general macroeconomic and / or economic conditions, including those caused by or related to the COVID-19 epidemic, recessions, economic instability and the epidemic disease; manufacturing capacity constraints or supply chain disruptions that may affect impact on our ability to deliver our products or on the price of components, which may cause our costs to increase, as well as impact the demand for our products from customers who are also affected by such capacity constraints or disturbances; the impact of competitive products and prices; timely design acceptance by our customers; timely introduction of new products and technologies; ability to introduce new products into volume production; industry-wide changes in the supply of and demand for semiconductor products; industry and / or company overcapacity or supply constraints; efficient and cost effective use of manufacturing capacity; financial stability in foreign markets and the impact of exchange rates; unforeseen costs and expenses or the inability to identify expenses that can be eliminated; compliance with US and international trade and export laws and regulations by us and our distributors; modification or ratification of local or international laws and regulations, including those relating to the environment, health and safety; public health issues, including the COVID-19 pandemic; other business disruptions that could disrupt the supply or delivery or demand for Magnachip’s products, including uncertainties regarding the impacts of the COVID-19 pandemic that could result in plant closures, reduced workforce, a shortage of raw materials and goods produced in infected areas, as well as reduced consumer and business spending affecting demand for Magnachip’s products due to mandatory government and private sector business closures, travel or other restrictions to prevent the spread of disease; and other risks and uncertainties and factors identified under âRisk Factorsâ in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, and updated in subsequent reports filed by the Company with the SEC. These reports are available at www.magnachip.com Where www.sec.gov. Forward-looking statements speak only as of the date on which they are made, and the Company does not undertake to update them in light of new information or future events.
In United States:
Phone. + 1-408-712-6151
View original content to download multimedia:https://www.prnewswire.com/news-releases/magnachip-announces-new-75-million-stock-repurchase-program-301449417.html
SOURCE Magnachip Semiconductor Corporation