New Oriental Extends Share Repurchase Program

Rhea-AI Summary

New Oriental Education & Technology Group (NYSE: EDU, SEHK: 9901) announced an extension of its Share Repurchase Program through May 31, 2025. The program, initially launched in 2022 and amended in 2023, allows the company to repurchase up to US$153.7 million worth of shares. As of the press release date, New Oriental has already repurchased US$246.3 million worth of its ADSs. The repurchases can be executed through various means, including open market transactions and privately negotiated deals, depending on market conditions. The board will periodically review the program and may adjust its terms and size.

Positive

• Extended Share Repurchase Program shows confidence in company's future.
• Repurchased US$246.3 million worth of ADSs demonstrates strong financial position.
• Authorization to repurchase additional US$153.7 million indicates liquidity and capital allocation strategy.
• Flexibility in repurchase method (open market, private transactions) allows adaptability to market conditions.

Negative

• Potential for capital misallocation if market conditions worsen.
• Repurchase funds could have been used for other value-generating investments.
• Market conditions may affect the timing and effectiveness of the repurchase.

BEIJING, May 24, 2024 /PRNewswire/ -- New Oriental Education & Technology Group Inc. ("New Oriental" or the "Company") (NYSE: EDU and SEHK: 9901), a provider of private educational services in China, today announced that its board of directors has authorized the Company to extend its share repurchase program launched in 2022 and amended in 2023 (the "Share Repurchase Program"), over the next twelve months through May 31, 2025. As of the date of this press release, the Company had repurchased approximately US$246.3 million worth of its ADSs under the Share Repurchase Program, and a balance of approximately US$153.7 million authorized under the Share Repurchase Program had not been utilized. Pursuant to the extended Share Repurchase Program, the Company may repurchase up to approximately US$153.7 million of its shares in the form of ADSs and/or common shares through May 31, 2025.

The repurchases may be effected from time to time through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on the market conditions and in accordance with applicable rules and regulations. The Company's board of directors will review the Share Repurchase Program periodically, and may further authorize adjustment of its terms and size.

About New Oriental

New Oriental is a provider of private educational services in China offering a wide range of educational programs, services and products to a varied student population throughout China. New Oriental's program, service and product offerings mainly consist of educational services and test preparation courses, private label products and livestreaming e-commerce and other services, overseas study consulting services, and educational materials and distribution. New Oriental is listed on NYSE (NYSE: EDU) and SEHK (9901.SEHK), respectively. New Oriental's ADSs, each of which represents ten common shares, are listed and traded on the NYSE. The Hong Kong-listed shares are fully fungible with the ADSs listed on NYSE.

For more information about New Oriental, please visit http://www.neworiental.org/english/.

Contacts

For investor and media inquiries, please contact:

Ms. Rita Fong
FTI Consulting
Tel: +852 3768 4548
Email: rita.fong@fticonsulting.com 

Ms. Sisi Zhao 
New Oriental Education and Technology Group Inc. 
Tel: +86-10-6260-5568 
Email: zhaosisi@xdf.cn

View original content:https://www.prnewswire.com/news-releases/new-oriental-extends-share-repurchase-program-302155047.html

SOURCE New Oriental Education and Technology Group Inc.

FAQ

What is the duration of New Oriental's extended Share Repurchase Program?

The program is extended through May 31, 2025.

How much has New Oriental already repurchased under the Share Repurchase Program?

The company has repurchased approximately US$246.3 million worth of its ADSs.

How much is New Oriental authorized to repurchase in the extended program?

The company is authorized to repurchase up to US$153.7 million of its shares.

What methods can New Oriental use for the share repurchases?

The repurchases can be executed through open market transactions, privately negotiated deals, block trades, and other legally permissible means.

Will New Oriental's board review the Share Repurchase Program?

Yes, the board will periodically review the program and may adjust its terms and size.