Ford Motor Co. (F) said its board has approved a $1.8 billion share repurchase plan as the auto maker looks to offset impending share-based compensation and conversions of certain notes.

The company said it plans to repurchase up to 116 million shares of Ford common stock.

Shares closed Wednesday at $15.46 and were up less than one percent in after-hours trading.

The company expects to repurchase up to 103 million shares to offset the dilutive effect of potential conversions of certain senior convertible notes, and up to 12.6 million shares will be repurchased to offset the dilutive effect of share-based employee incentive compensation granted in 2014.

"These actions are consistent with our overall capital strategy to take anti-dilutive actions and position ourselves to further reduce automotive debt," said Chief Financial Officer Bob Shanks, noting that these moves will reduce the company's diluted shares by about 3%.

Last month, the nation's second-largest auto maker said first-quarter net income fell 39% to $989 million as the company set aside more money to fix defects in older vehicles and took a hit from currency devaluations in South America.