CN (TSX: CNR) (NYSE: CNI) announced today that its Board of
Directors has approved the repurchase of its shares under a new
normal course issuer bid (Bid), as well as a 19 per cent increase
in the 2022 dividend on the Company's common shares outstanding.
The Bid, in the range of C$5 billion, permits CN
to purchase, for cancellation, over a 12-month period up to 42
million common shares, representing 6.80 per cent of the
618,826,610 common shares issued and outstanding of the Company not
held by insiders on January 18, 2022. On that date, 701,740,872 CN
common shares were issued and outstanding.
Ghislain Houle, CN executive vice-president and
chief financial officer, said: “Together with our strong fourth
quarter financial and operating performance, the approval of our
new share repurchase plan and the 26th annual increase in our
dividend reflect the strength of our business and the ongoing
successful execution of the Strategic Plan announced in
September.”
The Bid will be conducted between February 1,
2022 and January 31, 2023 through a combination of discretionary
transactions and automatic repurchase plans at market prices
prevailing at the time of purchase, through the facilities of the
Toronto and New York stock exchanges, or alternative trading
systems, if eligible, and will conform to their regulations.
Purchases may also be conducted using derivative-based programs,
accelerated share repurchase transactions, or other methods of
acquiring shares, subject to any required regulatory approval and
on such terms and at such times as shall be permitted by applicable
laws.
The decisions regarding the timing and size of
future purchases of common shares under the Bid are subject to
management’s discretion and are based on a variety of factors,
including market conditions. The new Bid was approved by the
Toronto Stock Exchange (TSX) today. TSX rules permit CN to purchase
daily, through TSX facilities, a maximum of 304,263 common shares
under the Bid.
CN believes that the repurchase of its shares
represents an appropriate and beneficial use of the Company's
funds.
CN's current normal course issuer bid announced
in January 2021 for the purchase of up to 14 million common shares
expires on January 31, 2022. As at the close of trading on January
18, 2022, CN had repurchased 10,648,647 common shares at a
weighted-average price of C$153.70 per share, excluding brokerage
fees, returning C$1,637 million to its shareholders. Purchases were
made on the open market. CN paused its share repurchases between
the end of April 2021 and end of September 2021 while in the
process to obtain approval for the merger agreement with Kansas
City Southern.
CN's Board of Directors also approved a
first-quarter 2022 dividend on the Company's common shares
outstanding. A quarterly dividend of seventy-three and a quarter
cents (C$0.7325) per common share will be paid on March 31, 2022,
to shareholders of record at the close of business on March 10,
2022.
Forward-Looking Statements
Certain statements included in this news release
constitute "forward-looking statements" within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
under Canadian securities laws, including statements based on
management’s assessment and assumptions and publicly available
information with respect to CN. By their nature, forward-looking
statements involve risks, uncertainties and assumptions. CN
cautions that its assumptions may not materialize and that current
economic conditions render such assumptions, although reasonable at
the time they were made, subject to greater uncertainty.
Forward-looking statements may be identified by the use of
terminology such as "believes", "expects", "anticipates",
"assumes", "outlook", "plans", "targets" or other similar
words.
Forward-looking statements are not guarantees of
future performance and involve risks, uncertainties and other
factors which may cause actual results, performance or achievements
of CN to be materially different from the outlook or any future
results, performance or achievements implied by such statements.
Accordingly, readers are advised not to place undue reliance on
forward-looking statements. Important risk factors that could
affect the forward-looking statements include, but are not limited
to, the duration and effects of the COVID-19 pandemic; general
economic and business conditions, particularly in the context of
the COVID-19 pandemic; industry competition; inflation, currency
and interest rate fluctuations; changes in fuel prices; legislative
and/or regulatory developments; compliance with environmental laws
and regulations; actions by regulators; increases in maintenance
and operating costs; security threats; reliance on technology and
related cybersecurity risk; trade restrictions or other changes to
international trade arrangements; transportation of hazardous
materials; various events which could disrupt operations, including
illegal blockades of rail networks and natural events such as
severe weather, droughts, fires, floods and earthquakes; climate
change; labor negotiations and disruptions; environmental claims;
uncertainties of investigations, proceedings or other types of
claims and litigation; risks and liabilities arising from
derailments; timing and completion of capital programs; and other
risks detailed from time to time in reports filed by CN with
securities regulators in Canada and the United States. Reference
should be made to Management’s Discussion and Analysis in CN’s
annual and interim reports, Annual Information Form and Form
40-F, filed with Canadian and U.S. securities regulators and
available on CN’s website, for a description of major risk
factors.
Forward-looking statements reflect information
as of the date on which they are made. CN assumes no obligation to
update or revise forward-looking statements to reflect future
events, changes in circumstances, or changes in beliefs, unless
required by applicable securities laws. In the event CN does update
any forward-looking statement, no inference should be made that CN
will make additional updates with respect to that statement,
related matters, or any other forward-looking statement.
About CN
CN is a world-class transportation leader and
trade-enabler. Essential to the economy, to the customers, and to
the communities it serves, CN safely transports more than 300
million tons of natural resources, manufactured products, and
finished goods throughout North America every year. As the only
railroad connecting Canada’s Eastern and Western coasts with the
U.S. South through a 19,500-mile rail network, CN and its
affiliates have been contributing to community prosperity and
sustainable trade since 1919. CN is committed to programs
supporting social responsibility and environmental stewardship.
Contacts:
Media |
Investment Community |
Jonathan Abecassis |
Paul Butcher |
Senior Manager |
Vice-President |
Media Relations |
Investor Relations |
(438) 455-3692media@cn.ca |
(514)
399-0052investor.relations@cn.ca |
Canadian National Railway (TSX:CNR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Canadian National Railway (TSX:CNR)
Historical Stock Chart
From Apr 2023 to Apr 2024