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TAMPA — The board of directors at Sykes Enterprises Inc. authorized the repurchase of up to 5 million shares of the firm's common stock, representing 11% of the company's total outstanding stock and the company's largest repurchase ever.
Given the latest prices of Sykes' stock, the repurchase could end up costing the firm more than $70 million. Sykes ended 2010 with roughly $190 million in cash on its balance sheet.
President and CEO Chuck Sykes said the firm's “underlying healthy cash flow generation coupled with its strong balance sheet” motivated the authorization of the repurchase.
If its total enterprise value remains constant, the stock will trade for more than $15 a share once the purchasing is complete. Sykes' shares closed at $13.44 Thursday.
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