Zhongpin Inc., a Chinese pig meat processor, announced a stock repurchase program of up to $10 million of its outstanding stock over the next 12 months.
The stock repurchase program was approved by Zhongpin's board of directors on July 5, and was authorized to be effective from that time through July 4, 2012.
"Our board of directors approved this share repurchase program to demonstrate its confidence in the long-term growth outlook for Zhongpin and its desire to create value for our shareholders. Our good cash position gives us the flexibility both to continue our aggressive growth strategy and to buy our shares through the stock repurchase plan," said Mr. Xianfu Zhu, Zhongpin's chairman and CEO.
Under the stock repurchase program, Zhongpin is authorized to repurchase up to $10 million of its issued and outstanding common shares from time to time in open-market transactions on Nasdaq at market prices. Zhongpin expects to pay for the repurchased shares using internally available cash. Zhongpin had 40.3 million common shares outstanding as of March 31.