Micrel Buys Back Shares of Common Stock From Large Shareholder
Micrel, Inc. announced that a private placement was completed in which Micrel acquired 1.6 million shares of its common stock from Obrem Capital Management LLC at a purchase price of $6.25 per share, representing a moderate discount to the 30-day trailing average closing price on the day that the parties reached an agreement in principle, for a total purchase price of $10 million. The company used a portion of its cash on hand for the shares it purchased in the transaction. The purchase was made as part of the company’s share repurchase program previously announced on December 30, 2008.
In addition, Ray Zinn, Micrel’s President and CEO, and certain members of Micrel’s board of directors and executive officers, purchased an additional 283,000 shares from Obrem Capital, at the same discounted price for a total purchase price of approximately $1.8 million.
In total, the purchases represent 2.8% of the company’s common stock outstanding. The company will have 65,378,655 shares of common stock outstanding after the purchase.
"Micrel is committed to maximizing shareholder value and we feel the share buy-back announced today is a positive step towards this goal," said Zinn. "We believe this action underscores the management team’s confidence in our business prospects and reflects an ongoing cooperative relationship with our largest independent shareholder. Given our strong balance sheet and cash flow from operations, we believe this share buy-back is both a timely and appropriate use of the company’s capital resources."
