Sanderson Farms Inc announced that its board of directors expanded its stock repurchase program to one million shares. The company’s board previously authorized 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 approximately 20.3 million shares of common stock outstanding.
“The expansion of our stock repurchase program highlights the board’s confidence in the future of Sanderson Farms,” said Joe F Sanderson Jr, chairman and chief executive officer 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 about 13,000 shares under the previously authorized stock repurchase program. The newly authorized program will provide Sanderson Farms with the capacity to purchase some 987,000 shares. The stock repurchase program is authorized until April 24, 2012.
Sanderson Farms is engaged in the production, processing, marketing, and distribution of fresh and frozen chicken and other prepared food items. Visit www.sandersonfarms.com for more information.