TORONTO, April 6 /CNW/ - Loblaw Companies Limited's ("Loblaw") Board of
Directors has authorized the repurchase of up to 13,708,678 of its Common
Shares, representing 5% of the 274,173,564 Common Shares currently
outstanding, by way of a normal course issuer bid on the Toronto Stock
Exchange (the "TSX"). Daily purchases will be limited to 125,154 Common
Shares, other than block purchase exceptions.
The purchases may commence on April 8, 2009, and will terminate no later
than April 7, 2010. Purchases will be made in open market transactions on the
TSX. In addition Loblaw may enter into forward purchase or swap contracts
which may be settled by physical settlement, cash settlement or a combination
thereof. The forward price will be based on market price, dividend yield and
market interest rates.
Decisions regarding the timing of future repurchases will be based on
market conditions, share price and other factors. Loblaw may elect to suspend
or discontinue the bid at any time. Common Shares repurchased under the bid
will be cancelled.
Loblaw believes that the market price of its Common Shares could be such
that their purchase may be an attractive and appropriate use of corporate
funds in light of potential benefits to remaining shareholders.
From time to time, when Loblaw does not possess material nonpublic
information about itself or its securities, it may enter into a pre-defined
plan with its broker to allow for the repurchase of Common Shares at times
when Loblaw ordinarily would not be active in the market due to its own
internal trading blackout periods and insider trading rules. Any such plans
entered into with Loblaw's broker will be adopted in accordance with the
requirements of applicable Canadian securities laws.
For further information:
For further information: Inge van den Berg, Vice President, Investor
Relations, (905) 459-2500