Insituform Technologies, Inc. (Nasdaq Global Select Market: INSU) today announced that its Board of Directors has authorized a program to repurchase up to $10 million of the Company’s common stock. The authorization allows Insituform to purchase up to $5 million of common stock during the balance of the 2011 calendar year and up to $5 million of common stock during 2012. These amounts constitute the maximum that Insituform is currently permitted to repurchase in any calendar year under the terms of its credit facility.
Insituform 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 Insituform’s behalf even during periods when Insituform 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 10b5-1 plan sets the initiation date of the program at 48 hours after the public release of Insituform’s third quarter 2011 earnings, which is anticipated to occur on October 25, 2011.
J. Joseph Burgess, President and Chief Executive Officer of Insituform, said: “The establishment of this share repurchase plan is an affirmation by the Board that it believes the current market value of Insituform is not reflective of the true intrinsic value of the Company. While we are subject to certain limitations on the amount that we can currently expend on share repurchase programs under the terms of our credit facility, the Board wanted to signal its confidence in the future of the Company by hiring Merrill Lynch to conduct an orderly repurchase program subject to the limits imposed by our lenders and the federal securities regulations.”