Fresh Del Monte Produce has announced a three-year stock repurchase programme of the company’s ordinary shares, worth up to US$300m.
The company, which is a leading producer and marketer of both fresh and packaged fruit and vegetables, said the timing and number of shares to be repurchased in the open market will depend on a number of factors, including market conditions and alternative investment opportunities.
The repurchase programme is expected to be funded primarily from the company’s cash from operations and credit facility.
“Today’s announcement demonstrates the ongoing confidence we have in the underlying fundamentals of the company and shows our commitment to deliver long-term stockholder value,” said chairman and CEO, Mohammad Abu-Ghazaleh. “We believe that the company is undervalued at the current price levels and believe that repurchasing shares is an attractive and low-risk means to return capital to our investors.”