VANCOUVER, BC, June 8, 2021 /CNW/ - West Fraser Timber Co. Ltd.
("West Fraser" or the "Company") (TSX and NYSE: WFG)
announced today an increase in the quarterly dividend to
C$0.25 per share and an increase in
the Company's authorization to purchase up to 9,582,470 of its
Common shares (the "Shares").
Dividend Increase
The Board of Directors of the Company has declared a quarterly
dividend of C$0.25 per share on the
Common shares and the Class B Common shares in the capital of the
Company, payable on July 6, 2021 to
shareholders of record on June 21, 2021. This is an increase
from the previous quarterly dividend of C$0.20 per share.
Dividends are designated to be eligible dividends pursuant to
subsection 89(14) of the Income Tax Act (Canada) and any applicable provincial
legislation pertaining to eligible dividends.
Normal Course Issuer Bid Increase
The Toronto Stock Exchange ("TSX") has accepted a notice
filed by the Company of its intention to amend its current normal
course issuer bid ("NCIB") to increase the authorization to
purchase up to 9,582,470 of its Shares. This is an increase from
the current NCIB authorization of 6,044,000 Shares. The amendments
to the NCIB will become effective on June
11, 2021.
The amended TSX notice authorizes the Company to purchase,
during the 12-month period commencing February 17, 2021 and
ending February 16, 2022, an
additional 3,538,470 Shares of the Company representing in the
aggregate 10% of the public float as at February 8, 2021. Under its current NCIB, as of
June 7, 2021, the Company has
purchased 3,859,039 Shares at an average price of $88.08 per Share, resulting in
5,723,431 Shares remaining available for purchase under the
amended NCIB.
Shares may be purchased under the NCIB on the open market
through the facilities of the facilities of the TSX or the New York
Stock Exchange ("NYSE"), as well as through alternative
trading systems in Canada and the
United States. Share purchases on NYSE will be made in
compliance with Rule 10b-18 of the
U.S. Securities Exchange Act of 1934. Purchases may also be made by
private agreement or under a specific share repurchase program
pursuant to an issuer bid exemption order issued by a securities
regulatory authority. Purchases on the TSX and NYSE will be the
market price at the time of purchase. Purchase made by way of
private agreement or repurchase agreement may be at a discount to
the prevailing market price. The Shares purchased by the Company
will be cancelled.
The rules and policies of the TSX contain restrictions on the
number of shares that can be purchased under the NCIB, based on the
average daily trading volumes of the Common Shares on the TSX.
Similarly, the safe harbor conditions of Rule 10b-18 impose certain limitations on the number
of shares that can be purchased on the NYSE per day. Pursuant
to TSX policies, the daily purchases on the TSX will not exceed
239,815 Common shares, representing 25% of the average daily
trading volume of 959,262 Shares. The maximum number of shares
which can be purchased per day on NYSE will be 25% of the average
daily trading volume for the four calendar weeks preceding the date
of purchase. Daily purchase limits on TSX and NYSE are subject to
certain exemptions for eligible "block" trade purchases.
All purchases will be subject to West Fraser's normal trading
blackouts, other than purchases made pursuant to a pre-defined
automatic securities purchase plan that West Fraser may enter into
with its designated broker. In connection with the amended NCIB,
West Fraser will amend its existing automatic share purchase plan
pursuant to which the securities dealer acting as the Company's
agent for the NCIB may acquire, at its discretion, Shares of West
Fraser, subject to certain parameters as to price and number of
Shares.
The Company
West Fraser is a diversified wood products company with more
than 60 facilities in Canada,
the United States, the
United Kingdom, and Europe. From responsibly sourced and
sustainably managed forest resources, the Company produces lumber,
engineered wood products (OSB, LVL, MDF, plywood, and
particleboard), pulp, newsprint, wood chips, other residuals and
renewable energy. West Fraser's products are used in home
construction, repair and remodeling, industrial applications,
papers, tissue, and box materials.
Forward-Looking Statements
This news release contains forward-looking information or
forward-looking statements (collectively, "forward-looking
statements") within the meaning of applicable securities laws,
including future purchases of our Shares under the NCIB, including
pursuant to private agreements or a specific share repurchase
program under an issuer bid exemption order issued by applicable
securities regulatory authorities. Any such forward-looking
statements are based on information currently available to us and
are based on assumptions and analyses made by us in light of our
experience and our perception of historical trends and current
conditions. Readers should also refer to the risk factors set forth
in the Company's annual information form and management's
discussion and analysis for the year ended December 31, 2020, each dated February 11, 2021, available at SEDAR
(www.sedar.com) and EDGAR (www.sec.gov/edgar.shtml). There can be
no assurance that the plans, intentions or expectations upon which
forward-looking statements are based will be realized. Actual
results may differ, and the difference may be material and adverse
to the Company and its shareholders.
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SOURCE West Fraser Timber Co. Ltd.