LAUREL — Sanderson Farms Inc.’s board of directors yesterday expanded and extended to Feb. 16, 2014, its stock repurchase program approved Oct. 22, 2009, to repurchase up to one million shares from time to time at prevailing prices in open market transactions or in negotiated purchases, subject to market conditions, share price and other considerations.
The poultry company reports it has repurchased 782,096 shares under this stock repurchase program since its inception.
Yesterday’s action extended the program and increased the number of shares that may be repurchased by an additional 782,096 shares, returning the total number of shares remaining to be repurchased under the program to one million shares. In addition to these shares, the board and the board’s compensation committee authorized Sanderson Farms to repurchase at fair market value shares issued to the company’s stock incentive plan participants to meet withholding tax obligations incurred when their stock awards vest. Sanderson Farms currently has approximately 23 million shares of common stock outstanding.
“As in the past, we plan to use our stock repurchase program to offset shares issued through our equity compensation programs,” said Joe F. Sanderson Jr., chairman and CEO of Sanderson Farms. “We believe this program represents a good use of corporate funds while minimizing potential dilution related to our equity compensation programs.”