Sint-Katelijne-Waver, Belgium-headquartered Greenyard, which trades as GREEN on the Euronext Brussels Stock Exchange, has initiated a buyback program that could see up to 1,750,000 shares repurchased. This represents a total value of € 28.6 million, based on the March 14 closing price.
The company, which recently reported sales of €996.9 million (+6.3%) for the quarter ending December 31, 2016, produces and markets value-added frozen, canned and fresh vegetables and fruits. It also conducts business in the horticulture sector as a supplier of flowers, plants and growing media.
In December of 2016, Greenyard launched a significant refinancing effort that included the issuance of convertible bonds that resulted in annual interest cost savings of at least €15 million. Buying back the shares now is intended to mitigate the potential dilution from the convertible bond, to create a pool of own shares for financing potential future acquisitions and/or possible future long-term incentive plans. The share buyback program is not expected to materially impact the company’s leverage.
Greenyard’s board of directors has granted a discretionary mandate to an intermediary who will execute buybacks both on or outside the regulated market during open and closed periods. Block trades can be considered as well during open periods. The mandate is valid for one year, and can be ceased at any time.
