Tyson Foods Inc. has reactivated a program to repurchase up to 22.5 million shares of Tyson's Class A common stock.
The program permits the company to purchase shares through a variety of methods, including in the open market or through privately negotiated transactions, in accordance with applicable securities laws. "We have confidence in our company's performance and are taking this opportunity to return capital to shareholders," said Donnie Smith, Tyson's president and CEO. "For the past several years, our key priorities for using our cash were to pay down debt and to reinvest in our business. However, given the weakness in our share price, along with our strong liquidity, we believe accelerating the repurchase of shares is also an appropriate use of cash at this time."
The company intends to begin repurchasing shares during the 2011 fiscal third quarter; however, the amount to be repurchased during the quarter is expected to be less than 25% of the total authorization.
