VANCOUVER, Sept. 17, 2018 /CNW/ - West Fraser Timber Co. Ltd. ("West Fraser" or the "Company") announced today that it is proceeding with a renewal of its normal course issuer bid for up to 5,524,048 Common shares of the Company, representing approximately 10% of the public float as at September 11, 2018. On September 11, 2018, the Company had a total of 70,219,385 Common shares outstanding. The Company has received approval from the Toronto Stock Exchange (the "TSX") to commence this bid on September 19, 2018.
Pursuant to TSX policies, daily purchases will not exceed 96,492 Common shares, representing 25% of the average daily trading volume of 385,971 Common shares, except where such purchases are made in accordance with "block purchases" exemptions under applicable TSX policies.
The Company's renewed normal course issuer bid will terminate on September 18, 2019 or earlier if the number of shares sought in the normal course issuer bid have been purchased. The Company reserves the right to terminate the bid earlier if it feels it is appropriate to do so.
All shares will be purchased either on the open market through the facilities of the TSX or through other Canadian market places, and payment for the shares will be in accordance with TSX policies. The price paid for the shares will be the market price at the time of purchase. No purchases will be made other than by means of open market transactions during the term of the normal course issuer bid. The shares purchased by the Company will be cancelled. Purchases may be suspended by the Company at any time.
The Company's current normal course issuer bid for the purchase of up to 5,990,454 shares expires on September 18, 2018. The Company purchased the maximum number of common shares pursuant to such bid, at a weighted average price of $87.79 per Common share. All purchases were made on the open market through the facilities of the TSX.
West Fraser has also entered into a new automatic share purchase plan pursuant to which the securities dealer acting as the Company's agent for the normal course issuer bid may acquire, at its discretion, common shares of West Fraser on West Fraser's behalf during the quarterly blackout period of the Company for its third quarter 2018 results commencing October 1, 2018, subject to certain parameters as to price and number of shares.
West Fraser is a diversified wood products company producing lumber, LVL, MDF, plywood, pulp, newsprint, wood chips and energy with facilities in western Canada and the southern United States.
West Fraser shares trade on the Toronto Stock Exchange under the symbol: "WFT".
This News Release contains certain forward-looking statements about potential future developments, in particular those relating to the intent of West Fraser to purchase and cancel shares, the price of West Fraser shares in comparison to West Fraser's assessment of their value, the number of shares that may be purchased and the terms of West Fraser's normal course issuer bid and to the purchase of shares of West Fraser by its agent for the normal course issuer bid pursuant to the terms of the automatic share purchase plan. These forward‑looking statements are presented to provide reasonable guidance to the reader. Their accuracy and the actual timing of such purchases depend on and are subject to a number of assumptions, risks and uncertainties and other factors, including West Fraser's results of operations and changes in general market conditions. Accordingly, readers should exercise caution in relying upon forward‑looking statements and West Fraser undertakes no obligation to publicly revise them to reflect subsequent events or circumstances except as required by applicable securities laws.
SOURCE West Fraser Timber Co. Ltd.
For further information: Chris Virostek, Vice-President, Finance and Chief Financial Officer, (604) 895-2700, www.westfraser.com