WINNIPEG, June 12, 2019 /CNW/ - (TSX:NFI) NFI Group Inc. ("NFI") today announced that the Toronto Stock Exchange ("TSX") has accepted a notice filed by NFI of its intention to renew its normal course issuer bid ("NCIB") for its common shares (the "Shares"). NFI believes that in the event the Shares trade in a price range that does not fully reflect their value, the acquisition of Shares may represent an attractive and desirable use of its funds.
Under the NCIB, the board of directors of NFI authorized the repurchase of up to 5,357,914 Shares, which represents 10% of the public float of Shares on June 4, 2019. At the close of business on June 4, 2019, there were 62,335,706 Shares issued and outstanding. Under the NCIB, NFI may purchase up to 82,742 Shares on the TSX during any trading day, which represents 25% of the average daily trading volume of 330,971 Shares on the TSX for the six months ended May 31, 2019. Repurchases are authorized to commence on June 17, 2019 and will terminate on June 16, 2020, or earlier should NFI complete its repurchases prior to such date. NFI Group is not required to purchase any or a particular number of Shares under the bid.
All purchases will be made through the facilities of the TSX and any alternative Canadian trading systems and all Shares acquired under the NCIB will be cancelled. Repurchases will be subject to compliance with applicable Canadian securities laws.
Under the prior normal course issuer bid, which commenced on June 14, 2018 and ended on June 13, 2019, NFI sought the purchase of 5,549,465 Shares and purchased 2,306,275 Shares through open market purchases through the facilities of the TSX and alternative Canadian trading systems at a weighted average price paid per Share of C$40.70.
With over 8,900 team members operating from more than 50 facilities across ten countries, NFI is a leading independent global bus manufacturer providing a comprehensive suite of mass transportation solutions under brands: New Flyer® (heavy-duty transit buses), Alexander Dennis Limited (single and double-deck buses), Plaxton (motor coaches), MCI® (motor coaches), ARBOC® (low-floor cutaway and medium-duty buses), and NFI Parts™. NFI buses and motor coaches incorporate the widest range of drive systems available including: clean diesel, natural gas, diesel-electric hybrid, and zero-emission electric (trolley, battery, and fuel cell). In total, NFI now supports over 105,000 buses and coaches currently in service around the world. NFI common shares are traded on the Toronto Stock Exchange under the symbol NFI. News and information are available at www.nfigroup.com.
This press release may contain forward-looking statements relating to expected future events that involve risks and uncertainties, including statements regarding potential future purchases by NFI of its Shares pursuant to the NCIB. The future performance and prospects of NFI may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and the other risks and uncertainties detailed in the disclosure documents filed with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. NFI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.
SOURCE NFI Group Inc.
For further information: Stephen King, Group Director, Corporate Development and Investor Relations, NFI Group Inc., 204.224.6382, Stephen_King@newflyer.com