STELLARTON, NS, March 14, 2016 /CNW/ - Empire Company Limited ("Empire" or the "Company") (TSX: EMP.A) announced today that it has filed a notice with the Toronto Stock Exchange ("TSX") to purchase for cancellation up to 5,206,137 Non-Voting Class A shares representing approximately three percent of those outstanding, subject to obtaining regulatory approval. The purchases will be made through the facilities of the TSX. Currently 173,537,901 Non-Voting Class A shares are issued and outstanding. The price that Empire will pay for any such shares will be the market price at the time of acquisition. Purchases may commence on March 17, 2016, and shall terminate not later than March 16, 2017.
The Board of Directors and senior management of Empire are of the opinion that from time to time the purchase of Non-Voting Class A shares at the prevailing market prices is a worthwhile use of funds and in the best interests of Empire and its shareholders. Empire acquired 5,365,752 of its Non-Voting Class A shares at a weighted average price of $27.59 pursuant to its normal course issuer bid ("NCIB") ending March 16, 2016.
The average daily trading volume (the "ADTV") of the Non-Voting Class A shares was 300,851 on the TSX over the last six completed calendar months. Accordingly, under the policies of the TSX, Empire is entitled to purchase, during any one trading day up to 75,212 Non-Voting Class A shares (being 25 percent of the ADTV of the Non-Voting Class A shares). Empire is entitled to purchase a larger amount of Non-Voting Class A shares per calendar week, subject to the maximum number that may be acquired under the NCIB, if the transaction meets the block purchase exception under the TSX rules.
Empire Company Limited (TSX: EMP.A) is a Canadian company headquartered in Stellarton, Nova Scotia. Empire's key businesses are food retailing and related real estate. With approximately $24.1 billion in annualized sales and $10.1 billion in assets, Empire and its subsidiaries, franchisees and affiliates employ approximately 125,000 people.
This news release contains forward-looking statements which reflect management's expectations regarding Empire's plans to purchase for cancellation Non-Voting Class A shares under the NCIB. These statements are based on management's reasonable assumptions and beliefs in light of the information currently available to them, and reflect expectations as of March 9, 2016. These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from such statements, including without limitation, regulatory approval, market and economic conditions, availability of sellers, changes in laws and regulations, operating efficiencies and cost saving initiatives. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such forward-looking information. Empire does not undertake to update these forward-looking statements other than as required by applicable securities laws.
SOURCE Empire Company Limited
For further information:
Media Contact, Andrew Walker, Senior Vice President, Communications & Corporate Affairs, Sobeys Inc., (905) 238-7124 ext. 6711; Investor Contact, Ken Chernin, Director, Investor Relations, Empire Company Limited, (902) 752-8371 ext. 3409