Dublin-based fresh produce distributor Total Produce has confirmed it is considering purchasing its own shares, in a move which echoes a similar course of action taken last week by fellow Irish company Fyffes, which bought back 17m (5 per cent) shares late on Thursday, 18 November 2010.
In a statement to the Irish Stock Exchange, Total Produce company secretary Marie Reid said the group's board had reached the conclusion that acquiring its own shares would be a beneficial undertaking.
'Having regard to the current share price and the positive effect of purchasing shares on earnings per share, the board believes that it may be in the best interests of the company to exercise its buy back authority,' she said.
Total Produce is permitted to purchase its own shares under the authority granted to it by shareholders at its annual general meeting on 20 May 2010.
Once any shares in the company have been reacquired, Total Produce has the option of either cancelling the shares or holding them as so-called treasury shares.
