AGCO, a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology, today announced its Board of Directors has authorized a new share repurchase program of up to $1 billion of the Company's common stock, following the pending resolution with Tractors and Farm Equipment Limited (TAFE).
"AGCO has always maintained a disciplined and robust capital allocation plan, prioritizing the most effective deployment of capital to maximize shareholder value," said Eric Hansotia, AGCO's Chairman, President and CEO. "We are excited to announce this new substantial program as we believe this use of capital will benefit our investors while preserving financial flexibility to invest in our business, maintain our investment grade credit ratings and allow us to continue executing our Farmer-First strategy."
Share repurchases may be made by the Company from time to time in open market transactions at prevailing market prices or in privately negotiated transactions. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. The actual timing, number and value of shares repurchased under the latest program will be determined within the terms of the authorization, and will depend on a number of factors, including the trading price of the stock, and general market and business conditions and applicable legal requirements. This program does not oblige the Company to repurchase any shares under the authorization, and the program may be suspended, discontinued or modified at any time, for any reason and without notice.