C$ unless otherwise
stated
TSX/NYSE/PSE: MFC SEHK: 945
TORONTO, May 7, 2024
/CNW/ - Manulife Financial Corporation ("Manulife") announced today
that the Toronto Stock Exchange ("TSX") has approved Manulife's
amended normal course issuer bid ("NCIB"). As previously announced,
the purpose of the amendment is to increase the number of common
shares that Manulife may repurchase from up to 50 million
(approximately 2.8% of shares outstanding) to up to 90 million
(approximately 5% of shares outstanding as of February 12, 2024). The amendment is effective as
of May 13, 2024. The Office of
the Superintendent of Financial Institutions previously approved
the amended NCIB. Since the commencement of its current NCIB
on February 23, 2024 to May 3, 2024, Manulife has completed the
repurchase for cancellation of 12,390,400 common shares at a
volume weighted average repurchase price per common share of
$32.55. Under the NCIB, Manulife may
purchase up to 1,521,140 of its common shares on the TSX during any
trading day, which represents 25% of the average daily trading
volume of 6,084,560 common shares on the TSX for the six
months ended January 31, 2024, subject to TSX rules permitting
block purchases.
Continuing to have 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 on diluted
Earnings Per Share and core Earnings Per Share from previously
announced reinsurance transactions, one of which closed in
February 2024 and the second of which
closed in April 2024. The actual
number of common shares purchased, the timing of such purchases and
the price at which common shares are purchased will be determined
by Manulife.
Manulife's current normal course issuer bid commenced on
February 23, 2024 and will continue
until February 22, 2025, when the
NCIB expires, or such earlier date as Manulife completes its
purchases. 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 90 million common shares.
Manulife previously entered into an automatic share repurchase
plan under which its designated broker will repurchase Manulife's
common shares pursuant to the NCIB, and the automatic plan, as will
be amended to account for the aforementioned share increase, will
continue to apply to the amended 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, helping 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 2023, we had more than 38,000 employees,
over 98,000 agents, and thousands of distribution partners, serving
over 35 million customers. 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