Caixin News Agency, December 6th - Yum China (09987/YUMC) announced that it has signed a share repurchase agreement with a total repurchase amount of approximately 360 million US dollars. The agreement includes the repurchase of approximately $290 million worth of shares under Section 10b5-1 of the U.S. Securities and Exchange Act of 1934, as well as the repurchase of approximately HKD 550 million worth of shares under a repurchase program conducted in Hong Kong. These repurchase plans are part of the company's capital distribution plan and a broader plan to return $4.5 billion to shareholders through dividends and repurchases between 2024 and 2026, including $1.5 billion for the full year of 2024.
In addition, the company has sought and obtained an exemption from the Hong Kong Stock Exchange's strict compliance with Rule 10.06 (2) (e) of the Listing Rules to conduct share repurchases during the restricted period. According to the Hong Kong repurchase agreement, the repurchase will be conducted through the open market and will be executed by independent brokerage firm Goldman Sachs (Asia) L.L.C. The term of this agreement is expected to be from January 6, 2025 to June 30, 2025 or until the total repurchase amount is completed. The company stated that this repurchase structure complies with the listing rules and relevant guidelines, and helps to reduce the risk of undisclosed insider trading and potential price manipulation.