CALGARY, June 22, 2016 /CNW/ - Imperial today announced it has received final acceptance from the Toronto Stock Exchange for a new normal course issuer bid to continue its existing share repurchase program that will expire on June 24, 2016.
In December 2002, Imperial introduced a restricted stock unit plan pursuant to which shares may be issued upon vesting. The issuing of shares that result from the vesting of restricted stock units could dilute the percentage ownership levels of shareholders. As a result, Imperial will proceed with the repurchase of shares in the market to reduce or eliminate such a dilution, in the best interest of the company and its shareholders. Imperial will limit the number of shares to be purchased as part of the normal course issuer bid to fewer than 1,000,000 common shares. As of June 13, 2016, Imperial has 847,599,011 issued and outstanding common shares. The average daily trading volume of Imperial's common shares over the six calendar months prior to the date of this announcement was 797,136 shares per day.
Exxon Mobil Corporation, Imperial's majority shareholder, will also be permitted to sell its shares to Imperial outside of, but concurrent with, the normal course issuer bid in order to maintain its proportionate share ownership at 69.6 percent in the event that Imperial repurchases shares in excess of those required to off-set the dilutive impact of the restricted stock unit plan. Exxon Mobil Corporation has advised Imperial that it intends to participate, as it has in prior years.
The new one year program will begin on June 27, 2016, and will end when the company has purchased the maximum allowable number of shares, or on June 26, 2017. All share purchases will be made through the Toronto Stock Exchange and through other designated exchanges and published markets in Canada. Shares purchased under the normal course issuer bid and from Exxon Mobil Corporation are restored to the status of authorized but unissued shares.
Share repurchases under the existing program were limited to 925 shares at a total cost of about $39,000 by June 13, 2016, representing an average cost of $41.79 per share. Imperial's daily trading limit under the new program will be 199,284 shares, which represents 25 percent of Imperial's daily trading volume.
SOURCE Imperial Oil Limited
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