BRAMPTON, ON, April 11, 2014 /CNW/ - (TSX: L) - Loblaw Companies Limited (Loblaw) announced today that the Toronto
Stock Exchange (TSX) has accepted a notice filed by Loblaw of its
intention to make a normal course issuer bid (NCIB).
The TSX notice provides that Loblaw may, during the 12-month period
commencing April 15, 2014 and terminating April 14, 2015, purchase up
to 20,636,596 of Loblaw's common shares (Common Shares), representing
5% of the 412,731,915 Common Shares outstanding as of April 9, 2014, by
way of a NCIB on the TSX or through alternative trading systems. Based
on the average daily trading volume of 796,004 during the last six
months, daily purchases will be limited to 199,001 Common Shares, other
than block purchase exceptions.
Purchases of Common Shares will be made in open market transactions on
the TSX or through alternative trading systems. In addition, Loblaw may
enter into forward purchase or swap contracts in connection with Common
Shares 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 purchases of Common Shares will
be based on market conditions, share price and other factors. Loblaw
may elect to suspend or discontinue its NCIB at any time. Common Shares
purchased under the NCIB will be cancelled or used in connection with
the settlement of restricted share units or performance share units.
Loblaw believes that the market price of Common Shares could be such
that their purchase may be an attractive and appropriate use of
corporate funds. Loblaw may also use its NCIB to acquire the number of
Common Shares that are issued pursuant to the exercise of options in
order to offset the dilutive effect of options that have been
exercised. Loblaw purchased 1.5 million Common Shares at a weighted
average price of $47.93 pursuant to its previous NCIB.
From time to time, when Loblaw does not possess material non-public
information about itself or its securities, it may enter into a
pre-defined plan with its broker to allow for the purchase 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
Loblaw Companies Limited is Canada's food and pharmacy leader, the nation's largest retailer,
and the majority unitholder of Choice Properties Real Estate Investment
Trust. Loblaw provides Canadians with grocery, pharmacy, health and
beauty, apparel, general merchandise, banking, and wireless mobile
products and services. With more than 2,300 corporate, franchised and
Associate-owned locations, Loblaw, its franchisees, and
Associate-owners employ approximately 192,000 full- and part-time
employees, making it one of Canada's largest private sector employers.
Loblaw's purpose - Live Life Well - puts first the needs and well-being of Canadians who make one billion
transactions annually in the companies' stores. Loblaw is positioned to
meet and exceed those needs in many ways: convenient locations; more
than 1,050 grocery stores that span the value spectrum from discount to
specialty; full-service pharmacies at more than 1,250 Shoppers Drug
Mart and Pharmaprix locations and more than 500 Loblaw locations;
no-fee banking with PC Financial; affordable Joe Fresh fashion and
family apparel; and three of Canada's top consumer brands in Life
Brand®, noname® and President's Choice®. Through the PC Plus™ and
Shoppers Optimum® loyalty programs, more than one in every three
Canadians are rewarded for shopping with the companies.
For more information, visit Loblaw's website at www.loblaw.ca and Loblaw's issuer profile at www.sedar.com.
SOURCE: Loblaw Companies Limited
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