GUELPH, ON, March 18, 2020 /CNW/ - Linamar Corporation ("Linamar" or the "Company") (TSX:LNR) today announced the Toronto Stock Exchange (the "TSX") has approved the Company's notice of intention to renew its Normal Course Issuer Bid (the "Bid").
Under the Bid, the Company may repurchase on the open market (or as otherwise permitted), at its discretion during the period commencing on March 20, 2020 and ending on the earlier of March 19, 2021 and the completion of the maximum number of purchases permitted under the Bid, up to 4,396,427 common shares of the Company (the "Common Shares"), representing approximately 10% of the Company's "public float" (within the meaning of the rules of the TSX), subject to the normal terms and limitations of such a bid.
Under the TSX rules, during the six months ended February 29, 2020, the average daily trading volume of the Common Shares on the TSX was 179,539 Common Shares and, accordingly, daily purchases on the TSX pursuant to the Bid will be limited to 44,884 Common Shares, other than purchases made pursuant to the block purchase exception. The actual number of Common Shares which may be purchased pursuant to the Bid and the timing of any such purchases will be determined by the management of the Company, subject to applicable law and the rules of the TSX.
As of March 6, 2020, the Company had 64,958,821 issued and outstanding Common Shares and a "public float" of 43,964,265 Common Shares. The Company believes that the Bid is in the best interest of the Company and constitutes a desirable use of its funds.
Purchases are expected to be made through the facilities of the TSX, or such other permitted means (including through alternative trading systems in Canada), at prevailing market prices or as otherwise permitted. The Bid will be funded using existing cash resources, and any Common Shares repurchased by the Company under the Bid will be cancelled.
Pursuant to a previous notice of intention to conduct a normal course issuer bid, under which the Company sought and received approval from the TSX to purchase up to 4,506,324 Common Shares for the period of January 29, 2018 to January 28, 2019, the Company purchased 995,674 Common Shares on the open market at an average purchase price of $43.17 per share.
About Linamar Corporation
Linamar Corporation (TSX:LNR) is an advanced manufacturing company where the intersection of leading edge technology and deep manufacturing expertise is creating solutions that power vehicles, motion, work and lives for the future. The Company is made up of 2 operating segments – the Industrial segment and the Transportation segment, which are further divided into 5 operating groups – Skyjack, Agriculture, Machining & Assembly, Light Metal Casting and Forging, all world leaders in the design, development and production of highly engineered products. The Company's Skyjack and MacDon companies are noted for their innovative, high quality mobile industrial and harvesting equipment, notably class-leading aerial work platforms, telehandlers, draper headers and self-propelled windrowers. The Company's Machining & Assembly, Light Metal Casting and Forging operating groups focus on precision metallic components, modules and systems for powertrain, driveline and body systems designed for global electrified and traditionally powered vehicle and industrial markets. Linamar has more than 29,000 employees in 60 manufacturing locations, 8 R&D centres and 25 sales offices in 17 countries in North and South America, Europe and Asia which generated sales of $7.6 billion in 2018. For more information about Linamar Corporation and its industry leading products and services, visit www.linamar.com or follow us on Twitter at @LinamarCorp.
This release includes forward-looking statements regarding Linamar. Such statements are based on the current expectations and views of future events of the Company's business. In some cases, the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release, including, but not limited to, future purchases of Common Shares under the Bid, may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting Linamar, including risks regarding economic factors and many other factors beyond the control of the Company. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These and other risks and uncertainties, as well as other information related to the Company, are discussed in the Company's various public filings available on SEDAR and can be accessed at www.sedar.com. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
SOURCE Linamar Corporation
For further information: Andrea Bowman, Investor Relations, Linamar Corporation, Tel: 519.836.7550