BRAMPTON, ON, April 29, 2019 /CNW/ - (TSX: L) – Loblaw Companies Limited (Loblaw) announced today that the Toronto Stock Exchange (TSX) has accepted a notice filed by Loblaw of its intention to make a normal course issuer bid (NCIB).
The TSX notice provides that Loblaw may, during the 12-month period commencing May 1, 2019 and terminating April 30, 2020, purchase up to 18,455,884 of Loblaw's common shares (Common Shares), representing approximately 5% of the issued and outstanding Common Shares, by way of a NCIB on the TSX or through alternative trading systems or by such other means as may be permitted by the TSX or under applicable law. As of April 17, 2019, Loblaw had 369,117,695 outstanding Common Shares. Based on the average daily trading volume of 590,406 during the last six months, daily purchases will be limited to 147,601 Common Shares, other than block purchase exceptions.
Purchases of Common Shares will be made in open market transactions on the TSX or through alternative trading systems. In addition, Loblaw 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. Loblaw may also purchase Common Shares through private agreements or share repurchase programs if it receives an issuer bid exemption order permitting it to make such purchases. Any purchases of Common Shares made by way of private agreements or under share repurchase programs may be at a discount to the prevailing market price as provided in the relevant issuer bid exemption order.
Decisions regarding the timing of future purchases of Common Shares will be based on market conditions, share price and other factors. Loblaw may elect to suspend or discontinue its NCIB at any time. Common Shares purchased under the NCIB will be cancelled or used in connection with the settlement of restricted share units or performance share units. Loblaw believes that the market price of Common Shares could be such that their purchase may be an attractive and appropriate use of corporate funds. Loblaw 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. Under its prior NCIB that commenced on May 1, 2018 and expires on April 30, 2019, Loblaw had sought and received approval from the TSX to purchase up to 18,952,573 Common Shares. As of April 17, 2019, Loblaw has purchased 12,755,439 Common Shares under its prior NCIB through open market purchases on the TSX and exempt private agreements purchases, at a weighted average price of $63.44.
From time to time, when Loblaw 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 Loblaw 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 Loblaw's broker will be adopted in accordance with the requirements of applicable Canadian securities laws.
About Loblaw Companies Limited
Loblaw is Canada's food and pharmacy leader, and the nation's largest retailer. Loblaw provides Canadians with grocery, pharmacy, health and beauty, apparel, general merchandise, financial services and wireless mobile products and services. With more than 2,400 corporate, franchised and Associate-owned locations, Loblaw, its franchisees and Associate-owners employ approximately 200,000 full- and part-time employees, making it one of Canada's largest private sector employers.
Loblaw's purpose – Live Life Well® – puts first the needs and well-being of Canadians who make one billion transactions annually in the company's stores. Loblaw is positioned to meet and exceed those needs in many ways: convenient locations; more than 1,050 grocery stores that span the value spectrum from discount to specialty; full-service pharmacies at nearly 1,400 Shoppers Drug Mart® and Pharmaprix® locations and close to 500 Loblaw locations; PC Financial® services; affordable Joe Fresh® fashion and family apparel; and three of Canada's top-consumer brands in Life Brand , no name® and President's Choice.
SOURCE Loblaw Companies Limited
For further information: Roy MacDonald, Vice President, Investor Relations, (905) 861-2243, [email protected]