TORONTO, Feb. 9, 2017 /CNW/ - Intact Financial Corporation (TSX: IFC) (the "Company") announced today that a normal course issuer bid ("NCIB") authorized by its Board of Directors to purchase for cancellation during the next 12 months up to 6,551,741 common shares, representing approximately 5% of its issued and outstanding common shares, has been approved by the Toronto Stock Exchange ("TSX").
At the close of business on February 1, 2017, there were 131,034,834 common shares issued and outstanding. The actual number of common shares which will be purchased for cancellation and the timing of any such purchases will be determined by the Company. The Company's existing NCIB expires on February 11, 2017, and it believes that renewal of the NCIB provides a flexible means of distributing a portion of its excess capital to shareholders who choose to participate in the program. During the preceding 12-month period, under its previous NCIB the Company purchased 510,200 of its common shares at a weighted average price of $88.709.
Purchases under the NCIB will be made by means of open market transactions through the facilities of the TSX as well as through other designated exchanges and published markets in Canada. The exchange's rules permit the Company to purchase daily a maximum of 45,248 common shares through TSX facilities, subject to any block purchases made in accordance with TSX rules, which is 25% of the average daily trading volume of common shares for the six months prior to February 1, 2017.
Purchases for cancellation may be made through such other means as the TSX or a securities regulatory authority may permit, including by way of pre-arranged crosses or by way of private agreements outside the facilities of the TSX pursuant to exemption orders. The price to be paid by the Company for any shares will be the market price at the time of acquisition or such other price as the TSX and/or a securities regulatory authority may permit. Purchases for cancellation 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.
Purchases of common shares may commence on or about February 13, 2017 and will expire on the earlier of February 12, 2018 or the date on which the Company has either acquired the maximum number of common shares allowable or otherwise decided not to make any further repurchases.
About Intact Financial Corporation
Intact Financial Corporation (www.intactfc.com) is the largest provider of property and casualty insurance in Canada. The Company distributes insurance under the Intact Insurance brand through a wide network of brokers, including its wholly owned subsidiary, BrokerLink, and directly to consumers through belairdirect.
Forward Looking Statements
Certain statements made in this news release are forward-looking statements. These statements include, without limitation, statements relating to the terms and operation of the Company's normal course issuer bid as well as the Company's intention to repurchase its shares. All such forward-looking statements are made pursuant to the 'safe harbour' provisions of applicable Canadian securities laws.
Forward-looking statements, by their very nature, are subject to inherent risks and uncertainties and are based on several assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements as a result of various factors, including: a decision by the Company not to repurchase all or a portion of the total number of shares it is authorized to repurchase, those discussed in the Company's most recently filed Annual Information Form and those discussed in the Company's most recently filed annual MD&A. As a result, we cannot guarantee that any forward-looking statement will materialize and we caution you against unduly relying on any of these forward-looking statements. Except as may be required by Canadian securities laws, we do not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Please refer to the cautionary note of the Company's most recently filed MD&A.
SOURCE Intact Financial Corporation
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