Uruguay's dLocal unveils $100 million share buyback plan, shares jump
Dec 20 (Reuters) - Uruguayan fintech dLocal announced on Tuesday that its board had approved a $100 million share buyback program, a month after the company was hit by a short-seller's allegations of potential fraud and saw its stock price fall nearly 50%.
In a statement, dLocal also said its board and an audit committee had concluded after an internal review that the key allegations in the report by hedge fund Muddy Waters were "without merit."
The buyback plan will expire in July 2023 or when the $100 million purchase limit is reached, and will be financed using the company's existing cash balances, dLocal said in a statement.
Senior management and major shareholders such as General Atlantic will also be conducting share purchases "as a sign of their continued confidence and enthusiasm" in dLocal, the statement added.
The company added that it did not want to get in a "tit for tat" with Muddy Waters over the specifics of its report, but it dismissed claims including that dLocal had accessed client funds, and what it described as dubious reporting of its total payment volume.
"We are committed to the strength of dLocal's business and in delivering value to our shareholders. This buyback plan reflects the Board's confidence in our current performance and prospects and long-term growth," said dLocal Chairman Eduardo Azar.
The company's shares were up more than 14% in morning trading on the Nasdaq. (Reporting by Isabel Woodford; Editing by Paul Simao)