Aegion Corporation (Nasdaq Global Select Market: AEGN) today announced that its Board of Directors has authorized a new program to repurchase up to $5.0 million of the Company’s common stock during the balance of the 2012 calendar year. The Company previously repurchased $5.0 million of the Company’s common stock in the third quarter of 2011 at a weighted average price of $15.34 per share and $5.0 million of the Company’s common stock in the first quarter of 2012 at a weighted average price of $16.13 per share, pursuant to the terms of a stock purchase program previously announced on October 10, 2011. The amounts previously repurchased constituted the maximum that Aegion was permitted to repurchase in any calendar year under the terms of its credit facility. On November 2, 2012, the Company executed an amendment to its credit facility to allow for the additional $5.0 million repurchase in the fourth quarter of 2012.
Aegion 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 Aegion’s behalf even during periods when Aegion 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 plan is effective until December 31, 2012 or, if earlier, upon the repurchase of $5.0 million of the Company’s stock under the plan.
J. Joseph Burgess, President and Chief Executive Officer of Aegion, said: “We are very pleased with the Board’s decision to approve this new stock repurchase plan. We continue to believe that the market value of our stock does not fully reflect the true value of our businesses. We consider this repurchase program, coupled with the previous $10.0 million stock repurchase program, as an effective use of cash to enhance stockholder value.”
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