Imperial Oil Continues Existing Share Repurchase Program
21 Jun, 2013, 07:55 ET
CALGARY, June 21, 2013 /CNW/ - Imperial Oil Limited 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 facility that will expire on June 24, 2013.
In December 2002, Imperial introduced a restricted stock unit plan pursuant to which shares may be issued upon vesting. Since there could be a dilution in the percentage ownership levels of shareholders that would result from the issue of shares on the vesting of restricted stock units, Imperial considers that it would be in the best interests of Imperial and its shareholders to proceed with the purchase of shares in the market to reduce or eliminate such dilution. Imperial will limit the number of shares to be purchased pursuant to the normal course issuer bid to fewer than 1,000,000 shares. This amount represents 0.12% of Imperial's 847,599,011 issued and outstanding shares as at June 15, 2013.
Exxon Mobil Corporation, Imperial's majority shareholder, will also be permitted to sell its shares to Imperial outside the provisions of, but concurrently with, the normal course issuer bid in order to maintain its proportionate share ownership at 69.6% 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 25, 2013, and will end when the company has purchased the maximum allowable number of shares, or it provides earlier notice of termination. All share purchases will be made through the facilities of the Toronto Stock Exchange as well as 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.
No share repurchases have been made under the existing program. Imperial's daily trading limit under the new program will be 195,893 shares, which number is 25% of Imperial's daily trading volume.
Imperial Oil is one of Canada's largest corporations and leading member of the country's petroleum industry. The company is a major producer of crude oil and natural gas, Canada largest petroleum refiner, a key petrochemical producer and a leading marketer with coast-to-coast supply and retail service station networks.
SOURCE: Imperial Oil Limited
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