TORONTO, May 17, 2016 /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, 2016 and
terminating May 19, 2017, purchase up
to 6,397,215 Weston common shares
("Common Shares"), representing 5% of the 127,944,307 Common Shares
outstanding as of May 5, 2016, by way
of a NCIB over the facilities of the TSX or through alternative
trading systems. Based on the average daily trading volume of
138,106 during the last six months, daily purchases will be limited
to 34,526 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 trusts established by Weston 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. Within the past
12 months 196,404 Common Shares have been purchased at a weighted
average price of $106.28 pursuant to
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
George Weston Limited is a Canadian public company founded in
1882 and through its operating subsidiaries constitutes one of
North America's largest food
processing and distribution groups. George Weston Limited has two
reportable operating segments: Weston Foods and Loblaw, which is
operated by Loblaw Companies Limited. The Weston Foods operating
segment is primarily engaged in the baking industry within
North America. Loblaw is
Canada's largest retailer and
provides Canadians with grocery, pharmacy, health and beauty,
apparel, general merchandise, banking, and wireless mobile products
and services.
SOURCE George Weston Limited