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MONTREAL, Jan. 25 /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 24, 2011, there were 234,773,179
Class A Shares outstanding, of which approximately 98% were widely held
(representing a public float of 230,065,476 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 23,006,547 Class A Shares,
representing 10% of the Company's public float as of the close of
business on January 24, 2011. 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 837,951 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 209,487 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, 2011 and will
expire on the earlier of February 8, 2012 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, 2010 and will
expire on February 8, 2011, the Company had purchased, as of
January 24, 2011, an aggregate of 23,143,040 Class A Shares for
cancellation. These purchases were made through the facilities of the
TSX at a weighted average purchase price, as of January 24, 2011, of
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 31,000
professionals. CGI provides end-to-end IT and business process services
to clients worldwide from offices and centers of excellence in Canada,
the United States, Europe and Asia Pacific. As at December
31, CGI's annualized revenue was approximately C$4.5 billion and its
order backlog was approximately C$13.1 billion. CGI shares are listed
on the TSX (GIB.A) and the NYSE (GIB) and are included in both, the Dow
Jones Sustainability Index and the FTSE4Good Index. Website: www.cgi.com.
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:
Global Communications and Investor Relations