Manufacturing and distribution powerhouse, Seprod Limited, has announced plans to buy 10 million of its own shares on the open market next month.

Seprod said the buyback, which will cost J$150 million, is meant to take advantage of an attractively priced stock.

The stock has traded within a band of J$12.80 to J$23.60 in the past year and is currently performing at the lower end of the range.

The stock did not trade Tuesday. It closed up at J$13.54 Friday on movement of 7,700 units. The markets were closed Monday for the Heroes Day holiday.

Seprod proposes to buy the shares at a price of J$15, which amounts to a near 11 per cent premium on the last closing price. The effective date for the purchase is November 7, 2012.

Seprod Managing Director Byron Thompson was said to be out of office and was not reached for comment.

The company said it would finance the offer from internal resources.

Some 516.4 million Seprod shares are listed on the Jamaica Stock Exchange, which puts its market value at J$7 billion.

business@gleanerjm.com