TORONTO, May 15, 2014 /CNW/ - (TSX: WN) - George Weston Limited ("Weston") announced today that the Toronto Stock Exchange ("TSX") has accepted a notice filed by Weston of its intention to make a normal course issuer bid ("NCIB").
The NCIB notice provides that Weston may, during the 12-month period commencing May 20, 2014 and terminating May 19, 2015, purchase up to 6,395,629 of Weston's common shares ("Common Shares"), representing 5% of the 127,912,590 Common Shares outstanding as of May 13, 2014, by way of a NCIB over the facilities of the TSX or through alternative trading systems. Based on the average daily trading volume of 97,463 during the last six months, daily purchases will be limited to 24,366 Common Shares, other than block purchase exceptions.
Purchases of Common Shares will be made in open market transactions over the facilities of the TSX or alternative trading systems. In addition, Weston 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. Weston may elect to suspend or discontinue its NCIB at any time. Common Shares purchased under the NCIB will be cancelled or transferred to and held by the Weston Employee Benefit Plan Trust for the settlement of equity settled incentive plans. Weston believes that the market price of Common Shares could be such that their purchase may be an attractive and appropriate use of corporate funds. Weston 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. Weston did not purchase any Common Shares under its previous NCIB.
From time to time, when Weston 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 Weston 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 the Weston's broker will be adopted in accordance with the requirements of applicable Canadian securities laws.
About George Weston Limited
Founded in 1882, George Weston Limited ("Weston") is a major Canadian public company, representing Canada's largest food and drug retail businesses through its control of Loblaw Companies Limited ("Loblaw") and Loblaw's recent acquisition of Shoppers Drug Mart. With over 2,300 stores the retail operations reach most Canadians serving their everyday food, health and wellness needs. Through Weston Foods, Weston is one of Canada's leading bakers, offering a wide selection of fresh and frozen products to the North American market. Weston also controls one of Canada's largest REITs, Choice Properties REIT.
With over 200,000 employees, Weston is Canada's largest private sector employer.
SOURCE: George Weston Limited
For further information:
Geoffrey H. Wilson
Senior Vice President, Financial Control and Investor Relations