Compucredit Holdings Corp (NASDAQ:CCRT )has announced a buyback of 8.25 million shares at a price of $10 a share.
The company which provides various financial services and products made the offer on Wednesday.
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The tender offer is scheduled to expire on September 12. As of August 14, there were about 23.7 million shares of CompuCredit common stock outstanding, including about 1.7 million loaned shares, the company sad in its statement.
CompuCredit shares closed Wednesday's regular trading session at $5.02, down 13 cents or $2.52, but gained $2.88 or 57.37% to $7.90 in pre-market trading.
Earlier this month, CompuCredit sold its charged-off debt buying operations, names Jefferson Capital to Flexpoint Fund for $130.5 million.
The company planned to use the funds raised to expand other parts of its business and also for the share buyback programme.
CompuCredit provides credit cards, auto-lending and Internet microloans. Last year, it sold its retail business of about 300 cash-advance stores in nine states to Advance America Cash Advance Centers Inc. for about $45.6 million.
Meanwhile shares of America’s No. 3 wireless carrier Sprint Nextel Corporation(NYSE:S) rose to their highest level since July 2011 on hopes that the company would get on to the path of profitability, with better sales.
The stock jumped 8 percent to $5.39 at close in New York. The stock price has more than doubled so far this year.
Higher phone bills have benefitted the company with more customers using smartphones to download data. The company is phasing out its outdated Nextel network and expanding the reach of LTE service, that offers faster downloads.
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The climate is now ripe for consolidation in the wireless segment and analysts expect Sprint may be on the lookout for acquisition to boost its business and subscribers. Smaller players like MetroPCS and Leap are ideal candidates for such deals.