MONTREAL, July 29, 2013 /CNW Telbec/ - TransForce Inc. (TSX: TFI), a North American leader in the transportation and logistics industry, today announced that it has filed an application with the Toronto Stock Exchange ("TSX") for renewal of its normal course issuer bid ("NCIB"). The renewal of the NCIB is subject to the approval of the TSX. When the NCIB is renewed, TransForce will have the right to purchase for cancellation, from August 2, 2013 to August 1, 2014, a maximum of 6,000,000 common shares, representing 6.9% of the 86,976,830 shares forming TransForce's public float. As of July 24, 2013, TransForce had 91,979,723 common shares issued and outstanding.
Under its current NCIB, which expires on August 1, 2013, TransForce has repurchased, as of July 24, 2013, 4,357,800 common shares at an average purchase price of approximately $18.61 per share. All of the repurchased shares were cancelled by TransForce.
Any shares purchased by TransForce under the renewed NCIB will be at the market price of the shares at the time of such purchases. The actual number of shares that may be purchased and the timing of any such purchases will be determined by TransForce. Any purchases made by TransForce pursuant to the renewed NCIB will be made in accordance with the rules and policies of the TSX.
During the most recently-completed six months, the average daily trading volume for the common shares of TransForce on the TSX was 291,400. Consequently, under the policies of the TSX, TransForce will have the right to repurchase under the renewed NCIB, during any one trading day, a maximum of 72,850 shares, representing 25% of the average daily trading volume. In addition, TransForce will be allowed to make, once per calendar week, a block purchase (as such term is defined in the TSX Company Manual) of shares not directly or indirectly owned by insiders of TransForce, in accordance with the policies of the TSX.
In the opinion of TransForce's Board of Directors, TransForce's shares have been trading in a price range which does not adequately reflect their value, based on TransForce's business and strong financial position, and the share price is driving an unusually high yield. As a result, TransForce believes that, at appropriate times, repurchases of its shares through the NCIB can enhance shareholder value and represents an appropriate use of TransForce's financial resources.
To the knowledge of TransForce, no director or senior officer, including the CEO, and no person acting jointly or in concert with TransForce currently intends to sell shares during the renewed NCIB. To the knowledge of TransForce, no person currently holds 10% or more of TransForce's shares. However, sales by such persons through the facilities of the TSX may occur if any such person makes a decision unrelated to the NCIB. The benefits to any such person whose shares are purchased would be the same as the benefits available to all other shareholders whose shares are purchased under the NCIB.
TransForce Inc. is a North American leader in the transportation and logistics industry operating across Canada and the United States through its subsidiaries. TransForce creates value for shareholders by identifying strategic acquisitions and managing a growing network of wholly-owned, operating subsidiaries. Under the TransForce umbrella, companies benefit from corporate financial and operational resources to build their businesses and increase their efficiency. TransForce companies service the following segments:
- Package and Courier;
- Truckload, which includes specialized truckload and dedicated services;
- Specialized Services, which includes services to the energy sector, waste management, logistics and ancillary transportation services.
TransForce Inc. (TFI) is publicly traded on the Toronto Stock Exchange (TSX). For more information, visit http://www.transforcecompany.com.
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of TransForce. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for TransForce's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
SOURCE: TRANSFORCE INC.
For further information:
Chairman, President and CEO