Common share buyback program of Richelieu Hardware Ltd.
MONTREAL, Dec. 5, 2013 /CNW Telbec/ - Richelieu Hardware Ltd. (TSX: RCH) ("Richelieu" or the "Corporation") announces that the Toronto Stock Exchange has accepted its notice of intention to make a "normal course issuer bid" to purchase up to 1,002,303 of its common shares, representing 5% of the 20,046,061 outstanding common shares as at November 30, 2013, through the facilities of such exchange. The Corporation can only buy a maximum of 4,067 shares on a daily basis (per market day), considering the average daily trading volume of 16,270 shares during the last six months of the year ending November 30, 2013.
The number of shares that the Corporation intends to purchase and the time of such purchases will be determined by the Corporation, at its discretion. The purchase period will begin December 10, 2013, and end on the earlier of December 9, 2014, or the date on which the Corporation will have either acquired the above-stated maximum number of shares or otherwise decided not to make any further purchases. All the shares purchased will be cancelled by the Corporation.
The Board of Directors of Richelieu has concluded that the purchase of common shares may represent from time to time, an appropriate use of the Corporation's corporate funds. During the period from December 10, 2012 to November 30, 2013, the Corporation repurchased 873,000 common shares for cancellation purpose under its normal course issuer bid, at a weighted average price of $41.92 per share.
To the best knowledge of the Corporation, after reasonable inquiry, no director, senior officer or any of their associates, no person acting jointly or in concert with the Corporation, and no person holding 10% or more of the common shares currently intends to sell common shares under this normal course issuer bid.
Richelieu is a leading North American distributor, importer and manufacturer of specialty hardware and complementary products. Its products are targeted to an extensive customer base of kitchen and bathroom cabinet, furniture, and window and door manufacturers plus the residential and commercial woodworking industry, as well as a large customer base of hardware retailers, including renovation superstores. Richelieu offers customers a broad mix of high-end products sourced from manufacturers around the world. Its product selection consists of about 100,000 different items targeted to a base of some 70,000 customers who are served by 62 centres in North America - 35 distribution centres in Canada, 25 in the United States and two manufacturing plants in Canada, specifically Cedan Industries Inc. which specializes in the manufacture of a wide variety of veneer sheets and edgebanding products and Menuiserie des Pins Ltée which manufactures components for the window and door industry and a broad selection of decorative mouldings.
SOURCE Richelieu Hardware Ltd.For further information:
Vice-President, Finance and Chief Financial Officer