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MONTREAL, Jan. 27 /CNW Telbec/ - CGI Group Inc. (TSX: GIB.A; NYSE: GIB) (the "Company") announced today that its Board of Directors has authorized the renewal of its Normal Course Issuer Bid ("NCIB"), subject to acceptance by the Toronto Stock Exchange (the "TSX").
The Company's management and Board of Directors believe that the repurchase of Class A subordinate voting shares ("Class A Shares") of the Company is a proper use of the Company's funds, and the NCIB will provide the Company with the flexibility to purchase Class A Shares from time to time as the Company considers it advisable, as part of its strategy to increase shareholder value.
At the close of business on January 25, 2010, there were 256,093,729 Class A Shares outstanding, of which approximately 98% were widely held (representing a public float of 251,510,587 Class A Shares).
Under the terms of the NCIB, subject to TSX acceptance, the Company may purchase for cancellation on the open market through the facilities of the TSX and the New York Stock Exchange and through alternative trading systems (such as Alpha ATS) up to 25,151,058 Class A Shares, representing approximately 10% of the Company's public float as of the close of business on January 25, 2010. The average daily trading volume (the "ADTV") of the Class A Shares on the TSX for the past six months (excluding purchases under the NCIB) was 710,835 Class A Shares. Consequently and in accordance with the requirements of the TSX, the daily purchase limit under the NCIB on the TSX will be 177,708 Class A Shares, representing 25% of the ADTV. All Class A Shares will be purchased at their market price at the time of acquisition. All shares purchased under the NCIB will be cancelled.
Purchases of Class A Shares may commence on February 9, 2010 and will expire on the earlier of February 8, 2011 or the date on which the Company has either acquired the maximum number of Class A Shares allowable under the NCIB or otherwise decided not to make any further repurchases under the NCIB.
Under the terms of its NCIB that commenced on February 9, 2009 and will expire on February 8, 2010, the Company had purchased, as of January 25, 2010, an aggregate of 24,734,320 Class A Shares for cancellation. These purchases were made through the facilities of the TSX at a weighted average purchase price, as of January 25, 2010, of $12.33.
Founded in 1976, CGI Group Inc. is one of the largest independent information technology and business process services firms in the world. CGI and its affiliated companies employ approximately 26,000 professionals. CGI provides end-to-end IT and business process services to clients worldwide from offices in Canada, the United States, Europe and Asia Pacific as well as from centers of excellence in North America, Europe and India. As at December 31, 2009, CGI's order backlog was $11.4 billion. CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB) and are included in the S&P/TSX Composite Index as well as the S&P/TSX Capped Information Technology and MidCap Indices. Website: www.cgi.com.
CGI Forward-Looking Statements
All statements in this press release that do not directly and exclusively relate to historical facts constitute "forward-looking statements" within the meaning of that term in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and are "forward-looking information" within the meaning of Canadian securities laws. These statements and this information represent CGI's intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors, of which many are beyond the control of the Company. These factors could cause actual results to differ materially from such forward-looking statements or forward-looking information. These factors include but are not restricted to: the timing and size of new contracts; acquisitions and other corporate developments; the ability to attract and retain qualified members; market competition in the rapidly evolving IT industry; general economic and business conditions; foreign exchange and other risks identified in the press release, in CGI's Annual Report on Form 40-F filed with the U.S. Securities and Exchange Commission (filed on EDGAR at www.sec.gov), the Company's Annual Information Form filed with the Canadian securities authorities (filed on SEDAR at www.sedar.com), as well as assumptions regarding the foregoing. The words "believe," "estimate," "expect," "intend," "anticipate," "foresee," "plan," and similar expressions and variations thereof, identify certain of such forward-looking statements or forward-looking information, which speak only as of the date on which they are made. In particular, statements relating to future performance are forward-looking statements and forward-looking information. CGI disclaims any intention or obligation to publicly update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements or on this forward-looking information. You will find more information about the risks that could cause our actual results to differ significantly from our current expectations in the Risks and Uncertainties section.
SOURCE CGI Group Inc.
For further information: For further information: Lorne Gorber, Vice-President, Global Communications and Investor Relations, (514) 841-3355, firstname.lastname@example.org