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Xueda Education Group (NYSE: XUE) (“Xueda” or the “Company”), the leading national provider of tutoring services for primary and secondary school students in China with a focus on offering personalized tutoring services, today announced that its Board of Directors has approved a share repurchase program. Xueda today also announced updates on business outlook for the third quarter and full year 2011.
Share Repurchase Program
Under the approved program, Xueda is authorized to repurchase up to $30 million worth of its outstanding American Depositary Shares (“ADSs”) representing its ordinary shares from time to time on the open market at prevailing market prices, in block trades or otherwise. The timing and amount of any ADSs repurchased will be determined by Xueda's management, based on its evaluation of market conditions, the trading price of the stock and other factors, as well as subject to relevant rules under the Securities Exchange Act of 1934, as amended (the “Act”). The Company will also effect repurchase transactions in compliance with Rule 10b5-1 under the Act and the Company’s insider trading policy. The repurchase program may be suspended or discontinued at any time.
Mr. Xin Jin, co-founder and Chief Executive Officer of Xueda, stated, "We believe that the current trading price of our ADSs significantly undervalues our company. We continue to see strong upward trends in our industry, and as the premier provider of personalized education in China with 256 learning centers and over 14,000 employees, we remain confident in our business strategy and growth prospects. At the present time, the combination of market valuations, our solid cash flows, cash balances and financial strength lead us to believe that this share repurchase program is an appropriate use of cash. We retain adequate flexibility for future growth and therefore the program is in the best interests of our shareholders."