BRAMPTON, ON, April 26, 2017 /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 April 28, 2017 and
terminating April 27, 2018, purchase
up to 21,016,472 of Loblaw's common shares (Common Shares),
representing approximately 10% of the public float, 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 12, 2017 Loblaw had
398,404,923 outstanding Common Shares. Based on the average daily
trading volume of 514,607 during the last six months, daily
purchases will be limited to 128,651 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 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. Within the past
12 months 10,284,793 Common Shares have been purchased at a
weighted average price of $69.6892
pursuant to its previous NCIB.
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.
Loblaw Companies Limited is Canada's food and pharmacy leader, the
nation's largest retailer, and the majority unitholder of Choice
Properties Real Estate Investment Trust. Loblaw provides Canadians
with grocery, pharmacy, health and beauty, apparel, general
merchandise, banking, and wireless mobile products and services.
With more than 2,300 corporate, franchised and Associate-owned
locations, Loblaw, its franchisees, and Associate-owners employ
approximately 192,000 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 companies' 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 more than 1,250 Shoppers Drug
Mart and Pharmaprix locations and more than 500 Loblaw locations;
no-fee banking with PC Financial; affordable Joe Fresh fashion and family apparel; and three
of Canada's top consumer brands in
Life Brand®, noname® and President's Choice®. Through the PC Plus™
and Shoppers Optimum® loyalty programs, more than one in every
three Canadians are rewarded for shopping with the companies.
For more information, visit Loblaw's website
at www.loblaw.ca and Loblaw's issuer profile
at www.sedar.com.
SOURCE Loblaw Companies Limited