The company proposed buying back up to 10% of its stock in a circular sent to shareholders on 31 May. The buyback, subject to shareholder approval, will run until 24 September.
Share buybacks (repurchase of existing stock from the market) reward shareholders by reducing number of shares in circulation thus increasing the size of remaining stakes. They don’t generate tax liabilities as with dividend payments, and are seen as a sign of management confidence in the company. All else being equal, they will cause the share price to rise.