The board of US-based Fresh Del Monte Produce Inc has revealed that it has approved a plan to repurchase up to US$150m (€104.8m) of the company's shares over a three-year period.

The fresh fruit and vegetable specialist said that the share buyback will be funded primarily through the company's cash from operations and credit facility, the Associated Press reported.

Last month, the group announced that it had refinanced its existingcredit facility and term loan with a new US$500m senior securedrevolving credit facility, which has a 3-and-a-half year term with ascheduled maturity date of 17 January 2013.

Companies often buy back stock in an effort to bolster their shares' value, with around 63.6m Fresh Del Monte shares currently outstanding.

Last week, the group reported on a 'strong' set of results for the second quarterof 2009, with net sales up to US$978.4m (€687m) from US$972.2m (€683m)during the corresponding period of 2008.

Net profit for the quarter ended 26 June increased from US$41.9m(€29.4m) last year to US$52.2m (€36.7m), the group revealed, withearnings per diluted share up to US$1.11 from US$0.87 in 2008.

Topics