Mexico's Urbi to reduce home starts, boost buyback

MEXICO CITY, March 25 (Reuters) - Mexican homebuilder Urbi said on Wednesday it would build fewer houses than previously planned and increase its share buyback plan to deal with the difficult economy in Mexico.

Urbi (URBI.MX) said in a statement it would reduce the number of homes it would build this year by up to 25 percent to maximize its free cash flow, allowing it to boost its stock buyback plan by 3 billion pesos ($210 million).

The measures should boost Urbi's free cash flow to 2.0-2.5 billion pesos this year from 1 billion pesos as previously forecast. The company's debt levels will remain unchanged, Urbi said.

The larger share buyback plan envisages the purchase and cancellation of 15 to 18 percent of the company's shares, Urbi said. (Reporting by Robert Campbell; editing by Richard Chang)