Sanderson Farms expands stock repurchase program

26-10-2009 | |

Sanderson Farms has announced that its Board of Directors expanded its stock repurchase program to 1 mln shares. The company’s Board of Directors previously authorised the repurchase of up to 225,000 shares in April 2008.

Under the stock repurchase program, shares may be purchased from time to time at prevailing prices in open market transactions or in negotiated purchases, subject to market conditions, share price and other considerations. Sanderson Farms currently has approx. 20.3 mln shares of common stock outstanding.

“The expansion of our stock repurchase program highlights the Board’s confidence in the future of Sanderson Farms,” stated Joe F. Sanderson, Jr., Chairman and CEO of Sanderson Farms. “We plan to use our expanded stock repurchase program to offset shares issued through our equity compensation programs. We believe this program represents a good use of corporate funds while minimizing potential dilution related to our equity compensation programs.”

The company has repurchased approx. 13,000 shares under the previously authorised stock repurchase program. The newly authorised program will provide Sanderson Farms with the capacity to purchase approx. 987,000 shares. The stock repurchase program is authorised until April 24, 2012.

Source: Sanderson Farms, Inc.

Natalie Berkhout Freelance journalist