TORONTO,
May 15, 2014 /CNW/ - (TSX: WN)
- George Weston Limited ("Weston") announced today that the
Toronto Stock Exchange ("TSX") has
accepted a notice filed by Weston
of its intention to make a normal course issuer bid ("NCIB").
The NCIB notice provides that Weston may, during the 12-month period
commencing May 20, 2014 and
terminating May 19, 2015, purchase up
to 6,395,629 of Weston's common
shares ("Common Shares"), representing 5% of the 127,912,590 Common
Shares outstanding as of May 13,
2014, by way of a NCIB over the facilities of the TSX or
through alternative trading systems. Based on the average daily
trading volume of 97,463 during the last six months, daily
purchases will be limited to 24,366 Common Shares, other than block
purchase exceptions.
Purchases of Common Shares will be made in open
market transactions over the facilities of the TSX or alternative
trading systems. In addition, Weston may enter into forward purchase or swap
contracts in connection with Common Shares which may be settled by
physical settlement, cash settlement or a combination thereof. The
forward price will be based on market price, dividend yield and
market interest rates.
Decisions regarding the timing of future
purchases of Common Shares will be based on market conditions,
share price and other factors. Weston may elect to suspend or discontinue its
NCIB at any time. Common Shares purchased under the NCIB will be
cancelled or transferred to and held by the Weston Employee Benefit
Plan Trust for the settlement of equity settled incentive plans.
Weston believes that the market
price of Common Shares could be such that their purchase may be an
attractive and appropriate use of corporate funds. Weston may also use its NCIB to acquire the
number of Common Shares that are issued pursuant to the exercise of
options in order to offset the dilutive effect of options that have
been exercised. Weston did
not purchase any Common Shares under its previous NCIB.
From time to time, when Weston does not possess material non-public
information about itself or its securities, it may enter into a
pre-defined plan with its broker to allow for the purchase of
Common Shares at times when Weston
ordinarily would not be active in the market due to its own
internal trading blackout periods and insider trading rules. Any
such plans entered into with the Weston's broker will be adopted in accordance
with the requirements of applicable Canadian securities laws.
About George Weston Limited
Founded in 1882, George Weston Limited ("Weston") is a major
Canadian public company, representing Canada's largest food and drug retail
businesses through its control of Loblaw Companies Limited
("Loblaw") and Loblaw's recent acquisition of Shoppers Drug Mart.
With over 2,300 stores the retail operations reach most Canadians
serving their everyday food, health and wellness needs. Through
Weston Foods, Weston is one of
Canada's leading bakers, offering
a wide selection of fresh and frozen products to the North American
market. Weston also controls one
of Canada's largest REITs, Choice
Properties REIT.
With over 200,000 employees, Weston is Canada's largest private sector employer.
SOURCE George Weston Limited