Micrel buys back stock from Obrem Capital

By Lisa Kerner

Charlotte, N.C., Feb. 11 - Micrel, Inc. acquired 1.6 million shares of its common stock from Obrem Capital Management LLC for $6.25 per share for a total of $10 million in a private placement.

The purchase was made using a portion of Micrel's cash on hand as part of the company's share repurchase program announced on Dec. 30, a Micrel news release said.

Ray Zinn, Micrel's president and chief executive officer, and some members of Micrel's board of directors and executive officers purchased an additional 283,000 shares from Obrem Capital at the same moderately discounted price for a total purchase price of $1.77 million.

Micrel said the total purchases represent 2.8% of its common stock outstanding and the company will have 65,378,655 shares outstanding after the purchases.

"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," Zinn said.

Micrel develops and manufactures high-performance analog power, mixed-signal and digital integrated circuits. The company is based in San Jose, Calif.

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