TORONTO, Feb. 9 /CNW/ -
Renewal of the NCIB
Intact Financial Corporation (TSX : IFC) announced today that the Board of Directors authorized the renewal of the company's normal course issuer bid (NCIB) to purchase for cancellation up to an additional 5% of its outstanding shares, subject to the approval of the Toronto Stock Exchange. It is expected that this normal course issuer bid will begin on or about February 22, 2011 following the expiry of the current NCIB.
Amendment to the current NCIB
Intact also announced that it has amended its current NCIB share repurchase program to allow for purchases outside the facilities of the TSX pursuant to exemption orders issued by a securities regulatory authority. Under the amended terms of the NCIB, Intact may continue to purchase common shares for cancellation on the open market through the facilities of the TSX as well as alternative trading systems. Intact may also purchase common shares for cancellation by way of private agreements under an issuer bid exemption order issued by a securities regulatory authority. Purchases made on the open market through the facilities of the TSX and alternative trading systems will be at the prevailing market price at the time of acquisition. Purchases made by way of private agreements under an issuer bid exemption order issued by a securities regulatory authority will be at a discount to the prevailing market price as provided in the exemption order.
Shareholder Rights Plan
The Board of Directors also adopted a shareholder rights plan, which will become effective at the close of business today. The plan is intended to ensure the fair treatment of Intact's shareholders in any transaction that would result in a change of control of the company. The plan also provides the Board of Directors and the shareholders with adequate time to evaluate any unsolicited take-over bid and, if appropriate, to seek out alternatives to maximize shareholder value. The plan will be submitted for ratification at the next meeting of shareholders. It is similar to those adopted by many Canadian corporations and will be available electronically at www.sedar.com.
About Intact Financial Corporation
Intact Financial Corporation (www.intactfc.com) is the largest provider of property and casualty insurance in the country with $4.5 billion in premiums. Its 7,500 employees offer home, auto and business insurance under the Intact Insurance, Novex Group Insurance, belairdirect and Grey Power brands.
Forward Looking Statements
This document may contain forward looking statements that involve risks and uncertainties. The company's actual results could differ materially from these forward looking statements as a result of various factors, including those discussed in the company's most recently filed Annual Information Form and annual Management's Discussion & Analysis. Please read the cautionary note at the end of the MD&A.
SOURCE Intact Financial Corporation
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