The board of directors for Brazil-based meat, poultry and food company BRF has approved a share buyback program. The program was agreed upon at the board’s April 28 meeting.
The goal of the share buyback program is to promote an efficient use of available cash resources in order to maximize the company’s capital allocation. The program is expected to provide the acquisition of up to 16.6 million common shares, all book-entry shares and without face value, corresponding to 2.03 percent of the company’s share capital, excluding shares held by the administrators and treasury shares.
The term of the share buyback program will be of 90 days -- from April 29, 2015, until July 28, 2015 -- and the executive board will be responsible to set the dates on which the buyback will be effectively executed. Any acquisition of shares will be compliant with the legal and regulatory blackout periods.
The shares acquired under the share buyback program will be canceled, used for the company’s stock option plan or for any other plans approved by the company.
Formerly known as Brasil Foods, BRF processes 1.83 billion birds annually, according to the WATT Global Media Top Companies Database. The company’s key product categories include chicken, turkey and pork.