CALGARY, June 22, 2016 /CNW/ - Imperial today announced it
has received final acceptance from the Toronto Stock Exchange for a
new normal course issuer bid to continue its existing share
repurchase program that will expire on June
24, 2016.
In December 2002, Imperial
introduced a restricted stock unit plan pursuant to which shares
may be issued upon vesting. The issuing of shares that result from
the vesting of restricted stock units could dilute the percentage
ownership levels of shareholders. As a result, Imperial will
proceed with the repurchase of shares in the market to reduce or
eliminate such a dilution, in the best interest of the company and
its shareholders. Imperial will limit the number of shares to be
purchased as part of the normal course issuer bid to fewer than
1,000,000 common shares. As of June 13,
2016, Imperial has 847,599,011 issued and outstanding common
shares. The average daily trading volume of Imperial's common
shares over the six calendar months prior to the date of this
announcement was 797,136 shares per day.
Exxon Mobil Corporation, Imperial's majority shareholder, will
also be permitted to sell its shares to Imperial outside of, but
concurrent with, the normal course issuer bid in order to maintain
its proportionate share ownership at 69.6 percent in the event that
Imperial repurchases shares in excess of those required to off-set
the dilutive impact of the restricted stock unit plan. Exxon Mobil
Corporation has advised Imperial that it intends to participate, as
it has in prior years.
The new one year program will begin on June 27, 2016, and will end when the company has
purchased the maximum allowable number of shares, or on
June 26, 2017. All share purchases
will be made through the Toronto Stock Exchange and through other
designated exchanges and published markets in Canada. Shares purchased under the normal
course issuer bid and from Exxon Mobil Corporation are restored to
the status of authorized but unissued shares.
Share repurchases under the existing program were limited to 925
shares at a total cost of about $39,000 by June 13,
2016, representing an average cost of $41.79 per share. Imperial's daily trading limit
under the new program will be 199,284 shares, which represents 25
percent of Imperial's daily trading volume.
SOURCE Imperial Oil Limited