BRAMPTON, ON, April 11, 2013 /CNW/ - Loblaw Companies Limited (Loblaw) announced today that the Toronto Stock Exchange (TSX) has accepted a notice filed by Loblaw of its intention to make a normal course issuer bid (NCIB).
The TSX notice provides that Loblaw may, during the 12-month period commencing April 13, 2013 and terminating April 12, 2014, purchase up to 14,103,672 of Loblaw's common shares (Common Shares), representing 5% of the 282,073,450 Common Shares outstanding as of March 31, 2013, by way of a NCIB on the TSX or through alternative trading systems. Based on the average daily trading volume of 465,874 Common Shares during the last six months, daily purchases will be limited to 116,468 Common Shares, other than block purchase exceptions.
Purchases of Common Shares will be made in open market transactions on the TSX or through alternative trading systems. In addition, Loblaw 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. Loblaw may elect to suspend or discontinue its NCIB at any time. Common Shares purchased under the NCIB will be cancelled or purchased and held by the Loblaw Employee Benefit Plan Trusts for the settlement of equity settled incentive plans. Loblaw believes that the market price of Common Shares could be such that their purchase may be an attractive and appropriate use of corporate funds. Loblaw 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. Loblaw purchased 1,472,297 Common Shares at a weighted average price of $40.97 pursuant to its previous NCIB.
From time to time, when Loblaw 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 Loblaw 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 Loblaw's broker will be adopted in accordance with the requirements of applicable Canadian securities laws.
About Loblaw Companies Limited
Loblaw Companies Limited, a subsidiary of George Weston Limited, is Canada's largest food retailer and a leading provider of drugstore, general merchandise and financial products and services. Loblaw is one of the largest private sector employers in Canada. With more than 1,000 corporate and franchised stores from coast to coast, Loblaw and its franchisees employ approximately 134,000 full-time and part-time employees. Through its portfolio of store formats, Loblaw is committed to providing Canadians with a wide, growing and successful range of products and services to meet the everyday household demands of Canadian consumers. Loblaw is known for the quality, innovation and value of its food offering. It offers Canada's strongest control (private) label program, including the unique President's Choice®, no name® and Joe Fresh® brands. In addition, the Company makes available to consumers President's Choice® financial services and offers the PC® points loyalty program.
SOURCE: Loblaw Companies Limited
Jonathan Ross
Director, Investor Relations
(905) 459-2500 x617649
[email protected]
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