C$ unless otherwise stated
TSX/NYSE/PSE: MFC SEHK:
945
TORONTO,
Feb. 1, 2022
/PRNewswire/ - Manulife Financial Corporation ("Manulife")
announced today that it has received approval from the Toronto
Stock Exchange ("TSX") for its previously announced normal course
issuer bid ("NCIB") permitting the purchase for cancellation of up
to 97 million of its common shares, representing approximately
5% of Manulife's issued and outstanding common shares. As at
January 31, 2022, Manulife had
1,942,706,408 common shares issued and outstanding. The Office of
the Superintendent of Financial Institutions Canada previously
approved the NCIB. Under the NCIB, Manulife may purchase up to
1,643,662 of its common shares on the TSX during any trading day,
which represents 25% of the average daily trading volume of
6,574,651 common shares on the TSX for the six months ended
December 31, 2021, subject to TSX
rules permitting block purchases. Purchases under the NCIB may
commence through the TSX on February 3,
2022 and continue until February 2,
2023, when the NCIB expires, or such earlier date as
Manulife completes its purchases.
Having an NCIB in place will provide Manulife with the
flexibility to purchase common shares as part of its capital
management strategy which is designed to maintain healthy
regulatory capital ratios while balancing the objective of
generating shareholder value. In addition, Manulife intends to
repurchase shares in order to mitigate the impact of a recently
completed reinsurance transaction on diluted Earnings Per Share and
core Earnings Per Share.
Purchases under the NCIB may be made through the facilities of
the TSX, the New York Stock Exchange, and alternative trading
systems in Canada and the United States at market prices prevailing
at the time of purchase or such other price as may be permitted.
All common shares acquired by Manulife under the NCIB will be
cancelled. Repurchases will be subject to compliance with
applicable Canadian securities laws and United States federal securities laws.
In addition, Manulife may undertake repurchases of its common
shares outside of Canada and
the United States in compliance
with applicable laws. Subject to regulatory approval, Manulife may
also acquire common shares directly from other holders by way of
private agreement pursuant to issuer bid exemption orders issued by
applicable securities regulatory authorities. Any private purchase
made under an exemption order issued by a securities regulatory
authority will generally be at a discount to the prevailing market
price. Manulife may also enter into derivative-based programs in
support of its repurchase activities, including the writing of put
options and forward purchase agreements, accelerated share
repurchase transactions, other equity contracts or use other
methods of acquiring shares, in each case subject to regulatory
approval and on such terms and at such times as shall be permitted
by applicable securities laws. The total number of common shares
repurchased under the NCIB and all other potential arrangements
will not exceed 97 million common shares.
Manulife has entered into an automatic share repurchase plan
under which its designated broker will repurchase Manulife's common
shares pursuant to the NCIB. The actual number of common shares
purchased under the automatic plan, the timing of such purchases
and the price at which common shares are purchased will depend upon
future market conditions. The automatic plan, which was pre-cleared
by the TSX, provides for the potential repurchase of common shares
at any time, including when Manulife ordinarily would not be active
in the market due to its own internal trading blackout periods,
insider trading rules, or otherwise.
Caution regarding forward-looking statements
This
document contains forward-looking statements within the meaning of
the "safe harbour" provisions of Canadian provincial securities
laws and the U.S. Private Securities Litigation Reform Act of 1995
with respect to possible future purchases by Manulife of its common
shares. Although we believe that the expectations reflected in such
forward-looking statements are reasonable, such statements involve
risks and uncertainties, and undue reliance should not be placed on
such statements. Certain material factors or assumptions are
applied in making forward-looking statements, and actual results
may differ materially from those expressed or implied in such
statements. Important factors that could cause actual common share
repurchases to differ materially from expectations include but are
not limited to the fact that the amount and timing of any future
common share repurchases will depend on the earnings, cash
requirements and financial condition of Manulife, market
conditions, capital requirements (including under LICAT capital
standards), common share issuance requirements, applicable law and
regulations (including Canadian and U.S. securities laws and
Canadian insurance company regulations), and other factors deemed
relevant by Manulife, and may be subject to regulatory approval or
conditions.
Additional information about material risk factors that could
cause actual results to differ materially from expectations may be
found in our most recent annual and interim reports and elsewhere
in our filings with Canadian and U.S. securities regulators.
The forward-looking statements in this document are, unless
otherwise indicated, stated as of the date hereof. We do not
undertake to update any forward-looking statements, except as
required by law.
About Manulife
Manulife Financial Corporation is a leading international
financial services provider that helps people make their decisions
easier and lives better. With our global headquarters in
Toronto, Canada, we provide
financial advice and insurance, operating as Manulife across
Canada, Asia, and Europe, and primarily as John Hancock in the
United States. Through Manulife Investment Management, the
global brand for our global wealth and asset management segment, we
serve individuals, institutions and retirement plan members
worldwide. At the end of 2020, we had more than 37,000 employees,
over 118,000 agents, and thousands of distribution partners,
serving over 30 million customers. As of September 30, 2021, we had CAD$1.4 trillion (US$1.1
trillion) in assets under management and administration, and
in the previous 12 months we made CAD$31.6
billion in payments to our customers.
Our principal operations are in Asia and Canada, and the
United States, where we have served customers for more than
155 years. We trade as 'MFC' on the Toronto, New
York, and the Philippine stock exchanges and under '945' in
Hong Kong. Not all offerings are
available in all jurisdictions. For additional information, please
visit manulife.com
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SOURCE Manulife Financial Corporation