Tel Aviv-Israel Chemicals Ltd. reports that its board of directors has approved its intention to commence a stock repurchase program of up to five percent of its outstanding ordinary shares over a ten-month period through June 30, 2009. The share purchase program, which could amount to NIS 3.5 billion ($971 million) according to the Sept. 3 closing closing share price, is the largest ever initiated by an Israeli company. The buyback will involve the purchase of ICL’s ordinary shares in open-market and off-market transactions by ICL or its subsidiaries. ICL said the move is due to its positive financial condition and its significant cash flow. The company recently announced record financial results for the first half of 2008, including net profit of $1.05 billion on $3.6 billion in revenues and 37 percent operating margins. Cash flow generated from operating activities for the second quarter reached a record $473.5 million. The repurchase will be made with funds eligible for distribution as dividends in accordance with the Israel Companies Law, 1999. Together with the company’s recently announced $300 million dividend, to be paid Sept. 23, and other dividends totaling $288 million distributed earlier in 2008, the share repurchase program underscores the board’s faith in the company.
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