Smithfield Foods, Inc. announced that its board of directors has approved a share repurchase programme authorising the company to buy up to $150 million of its common stock over the next 24 months. The company intends to fund share repurchases from cash on hand.
C. Larry Pope, president and chief executive officer commented, “Smithfield's top priority is to maximise value growth for our shareholders. Over the past year, we utilised cash to repurchase nearly $1 billion in debt to build a fortress balance sheet. Having achieved that goal, and considering our strong liquidity position, we believe that share repurchases are an appropriate use of cash at this time.”
The new authorisation replaces a previous share repurchase program. Share repurchases may be made on the open market, or in privately negotiated transactions. The number of shares repurchased, and the timing of any buybacks, will depend on corporate cash balances, business and economic conditions, and other factors, including investment opportunities.
Source: Smithfield Inc.