Laurentian Bank of Canada Launches its Dividend Reinvestment Plan
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MONTREAL, Dec. 5, 2012 /CNW Telbec/ - Laurentian Bank of Canada (TSX: LB) ("Bank") is pleased to announce the introduction of its Shareholder Dividend and Share Purchase Plan (the "Plan").
"We are very pleased to announce the implementation of our dividend reinvestment and stock purchase plan", indicated Michel Lauzon, Executive Vice-President and Chief Financial Officer. "In introducing this program, we are enabling our common and preferred shareholders to enjoy the benefits of purchasing Bank stock without incurring any brokerage charges" added M. Lauzon.
General description of the Plan
The Plan offers eligible Canadian holders of either common shares or Class A Preferred Shares the opportunity to have their regular quarterly cash dividends automatically reinvested in additional common shares of the Bank ("Common Shares"). Participants may also purchase Common Shares monthly with optional cash payments of a minimum amount of $500 per payment, up to an aggregate sum of $20,000 in each twelve month period ending October 31. No brokerage commissions, fees or services charges are to be paid by the participants in connection with purchases of such Common Shares under the Plan.
According to the Plan, the Bank will determine whether such Common Shares will be purchased from treasury or in the open market.
When Common Shares are to be purchased from treasury, participants may benefit from a discount of up to 5% from the investment price. No discount will be applied for Common Shares purchased in the open market or with optional cash payments.
Computershare Trust Company of Canada has been designated as the Plan agent and will act on behalf of the participants. Eligible owners whose shares are registered in their name may enroll via Computershare Trust Company of Canada by completing and submitting the enrollment form available at www.investorcentre.com/laurentianbank
Eligible owners who hold their shares in the name of a nominee such as a broker, investment dealer or financial institution, should contact their nominee to inquire about enrollment.
The Plan is in place for the next dividend payment
At its board meeting held on December 5, 2012, the Bank declared a dividend of $ 0.49 per Common Share and determined that reinvestments would be made in Common Shares issued from treasury at a 2% discount from the investment price. Additional details are set out in the Bank's press release relating to the quarterly dividends published today.
To participate in the Plan in time for the reinvestment of these dividends payable on February 1, 2013, eligible owners whose shares are registered in their name must enroll by no later than December 20, 2012. Eligible owners who hold their shares in the name of a nominee should contact their nominee to inquire about the timing of their enrolment. Enrollment under the Plan can otherwise be made at any time.
About Laurentian Bank
Laurentian Bank of Canada is a pan-Canadian banking institution that has nearly $35 billion in balance sheet assets and $33 billion in assets under administration. Founded in 1846, Laurentian Bank was selected in 2012 as one of the 10 winners of the Canada's Passion Capitalists program in recognition of its sustained success through the promotion of passion within its ranks. The Bank employs more than 4,200 employees.
Recognized for its excellent service, proximity and simplicity, Laurentian Bank serves more than one million clients in market segments in which it holds an enviable position. In addition to occupying a choice position among consumers in Québec, where it operates the third largest branch network, the Bank has built a solid reputation across Canada in the area of real estate and commercial financing thanks to its teams working out of more than 35 offices in Ontario, Québec, Alberta and British Columbia. Its subsidiary, B2B Bank, is a Canadian leader in providing banking products as well as investment accounts and services to financial advisors and brokers, while Laurentian Bank Securities is an integrated broker, widely recognized for its expertise and effectiveness nationwide.
SOURCE: LAURENTIAN BANK OF CANADAFor further information:
Vice-President, Public Affairs, Communications and Investor Relations
514 284-4500, extension 7511