Readers are referred
to the section "Forward-Looking Statements" at the end of this
release.
|
MONTRÉAL, Feb. 18, 2020 /CNW
Telbec/ - Power Corporation of Canada (TSX: POW) ("Power Corporation" or the
"Corporation") announced today that it has filed with the Toronto
Stock Exchange (the "TSX"), and the TSX has accepted, the
Corporation's notice of intention to make a normal course issuer
bid (the "NCIB").
Under the NCIB, the Corporation may purchase for cancellation,
on the open market, at its discretion during the period commencing
on February 20, 2020 and ending on
the earlier of February 19, 2021 and the completion of
purchases under the NCIB, up to 30,000,000 subordinate voting
shares of the Corporation (the "Subordinate Voting Shares"),
representing approximately 5.2% of the "public float" of the
Subordinate Voting Shares (within the meaning of the rules of the
TSX), subject to the normal terms and limitations of such bids.
Daily purchases on the TSX pursuant to the NCIB will be limited
to 293,370 Subordinate Voting Shares, other than purchases made
pursuant to the block purchase exception, based on the average
daily trading volume for six months ending January 31, 2020 of 1,173,483. The actual number
of Subordinate Voting Shares which may be purchased pursuant to the
NCIB and the timing of any such purchases will be determined by the
management of the Corporation, subject to applicable law and the
rules of the TSX. During the twelve months prior to February 18, 2020, Power Corporation did not make
any purchases of Subordinate Voting Shares pursuant to a normal
course issuer bid.
Purchases under the NCIB are expected to be made through the
facilities of the TSX or through alternative trading systems in
Canada, at prevailing market
prices. The NCIB will be funded using Power Corporation's existing
cash resources, and any Subordinate Voting Shares repurchased by
the Corporation under the NCIB will be cancelled.
As of February 13, 2020, following
completion of the reorganization transaction pursuant to which the
Corporation acquired all of the issued and outstanding common
shares of Power Financial Corporation ("PFC Shares") not
already owned, directly or indirectly, by the Corporation and
issued an aggregate of 250,628,173 Subordinate Voting Shares to
former holders of PFC Shares, the Corporation had 628,325,622
issued and outstanding Subordinate Voting Shares and a "public
float" (within the meaning of the rules of the TSX) of 577,391,327
Subordinate Voting Shares.
Power Corporation believes that the NCIB will provide the
flexibility to manage the Corporation's capital position while
generating value for shareholders.
Power Corporation intends to enter into an automatic share
purchase plan (the "ASPP") with a designated broker to allow for
the purchase of Subordinate Voting Shares under the NCIB at times
when the Corporation would ordinarily not be permitted to purchase
shares due to regulatory restrictions or self-imposed blackout
periods.
About Power Corporation
Power Corporation is an international management and holding
company that focuses on financial services in North America, Europe and Asia. Its core holdings are leading insurance,
retirement, wealth management and investment businesses, including
a portfolio of alternative asset investment platforms. To
learn more, visit www.PowerCorporation.com.
Forward-Looking Statements
Certain statements in this news release, other than statements
of historical fact, are forward-looking statements based on certain
assumptions and reflect the Corporation's current expectations.
Forward-looking statements are provided to present information
about management's current expectations and plans relating to the
future and the reader is cautioned that such statements may not be
appropriate for other purposes. These statements may include,
without limitation, statements regarding the operations, business,
financial condition, expected financial results, performance,
prospects, opportunities, priorities, targets, goals, ongoing
objectives, strategies and outlook of the Corporation and
statements related to the Corporation's intention to commence the
NCIB and the ASPP, and the timing and quantity of any purchases of
Subordinate Voting Shares thereunder. Forward-looking statements
include statements that are predictive in nature, depend upon or
refer to future events or conditions, or include words such as
"expects", "anticipates", "plans", "believes", "estimates",
"seeks", "intends", "targets", "projects", "forecasts" or negative
versions thereof and other similar expressions, or future or
conditional verbs such as "may", "will", "should", "would" and
"could".
By its nature, this information is subject to inherent risks and
uncertainties that may be general or specific and which give rise
to the possibility that expectations, forecasts, predictions,
projections or conclusions will not prove to be accurate, that
assumptions may not be correct and that objectives, strategic goals
and priorities will not be achieved. A variety of factors, many of
which are beyond the Corporation's and its subsidiaries' control,
affect the operations, performance and results of the Corporation
and its subsidiaries and their businesses, and could cause actual
results to differ materially from current expectations of estimated
or anticipated events or results. These factors include, but are
not limited to: the impact or unanticipated impact of general
economic, political and market factors in North America and internationally,
fluctuations in interest rates, inflation and foreign exchange
rates, monetary policies, business investment and the health of
local and global equity and capital markets, management of market
liquidity and funding risks, risks related to investments in
private companies and illiquid securities, risks associated with
financial instruments, changes in accounting policies and methods
used to report financial condition (including uncertainties
associated with significant judgments, estimates and assumptions),
the effect of applying future accounting changes, business
competition, operational and reputational risks, technological
changes, cybersecurity risks, changes in government regulation and
legislation, changes in tax laws, unexpected judicial or regulatory
proceedings, catastrophic events, the Corporation's and its
subsidiaries' ability to complete strategic transactions, integrate
acquisitions and implement other growth strategies, and the
Corporation's and its subsidiaries' success in anticipating and
managing the foregoing factors.
The reader is cautioned to consider these and other factors,
uncertainties and potential events carefully and not to put undue
reliance on forward-looking statements. Information contained in
forward-looking statements is based upon certain material
assumptions that were applied in drawing a conclusion or making a
forecast or projection, including, without limitation, the
availability of cash for repurchases of outstanding Subordinate
Voting Shares under the NCIB, the existence of alternative uses for
the Corporation's cash resources which may be superior to effecting
repurchases under the NCIB, compliance by third parties with their
contractual obligations, compliance with applicable laws and
regulations pertaining to the NCIB, management's perceptions of
historical trends, current conditions and expected future
developments, as well as other considerations that are believed to
be appropriate in the circumstances, including that the list of
factors in the previous paragraph, collectively, are not expected
to have a material impact on the Corporation and its subsidiaries.
While the Corporation considers these assumptions to be reasonable
based on information currently available to management, they may
prove to be incorrect.
Other than as specifically required by applicable Canadian law,
the Corporation undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after
the date on which such statement is made, or to reflect the
occurrence of unanticipated events, whether as a result of new
information, future events or results, or otherwise.
Additional information about the risks and uncertainties of the
Corporation's business and material factors or assumptions on which
information contained in forward-looking statements is based is
provided in its disclosure materials, including its most recent
Management's Discussion and Analysis and Annual Information Form,
filed with the securities regulatory authorities in Canada and available at www.sedar.com.
SOURCE Power Corporation of Canada