TORONTO, Jan. 10, 2018 /CNW/ - Royal Bank of Canada (RBC) ("RY" on TSX and NYSE) today
announced that it will repurchase shares under two specific share
repurchase programs (the "Programs"). RBC will enter into two
separate agreements (the "Agreements") with third parties to
repurchase common shares through daily purchases under each
Program. The Programs will run sequentially between
January 15, 2018 and January 31, 2018. Purchases under the first
Program will commence on January 15,
2018 and will be subject to a maximum of 3,500,000 common
shares. Purchases under the second Program will commence
following completion of the first Program and will be subject to a
maximum of 5,799,378 common shares. The Programs will form part of
RBC's Normal Course Issuer Bid for up to 30,000,000 common shares
(the "NCIB") announced on March 9,
2017.
Pursuant to the terms of the Agreements, and subject to the
terms of the issuer bid exemption orders issued by the Ontario
Securities Commission (the "Orders"), the third parties will
purchase RBC's common shares on Canadian markets for the purpose of
enabling the third parties to fulfil their delivery obligations to
RBC under the Agreements. The price that RBC will pay for any
common shares purchased by it from the third parties under the
Agreements will be negotiated by RBC and the third parties and will
be at a discount to the prevailing market price of RBC's common
shares on the Canadian markets at the time of purchase. RBC
currently intends to purchase the maximum of 9,299,378 common
shares in aggregate under the Programs, however the number of
common shares purchased pursuant to the Programs may be less than
the maximum if, among other things, it is not possible to purchase
common shares within the pricing parameters established prior to
commencement of each Program, if trading is suspended, or as a
result of market factors. In accordance with the terms of the
Orders, immediately following the completion of each Program, RBC
will issue a news release providing information regarding the
purchases made pursuant to that Program including the number of
common shares purchased and aggregate purchase price paid.
Pursuant to the terms of the Agreements and the Orders, all
purchases made by the third parties or their agents on the TSX and
other Canadian markets pursuant to the Programs will be made in
accordance with the TSX rules applicable to the normal course
issuer bid, subject to limited exceptions as provided in the
Orders. RBC will acquire common shares from the third parties
pursuant to the Agreements as part of the normal course issuer bid
and such common shares will be cancelled upon purchase by RBC.
Caution regarding forward-looking statements
Certain statements contained in this press release may be deemed
to be forward-looking statements within the meaning of certain
securities laws, including the "safe harbour" provisions of the
United States Private Securities Litigation Reform Act of
1995 and any applicable Canadian securities legislation. These
forward-looking statements include, but are not limited to,
statements with respect to the specific share repurchase programs
forming part of Royal Bank of Canada's normal course issuer bid.
Forward-looking statements are typically identified by words such
as "believe", "expect", "foresee", "forecast", "anticipate",
"intend", "estimate", "goal", "plan" and "project" and similar
expressions of future or conditional verbs such as "will", "may",
"should", "could" or "would".
By their very nature, forward-looking statements require us to
make assumptions and are subject to inherent risks and
uncertainties, which give rise to the possibility that our
predictions, forecasts, projections, expectations or conclusions
will not prove to be accurate, that our assumptions may not be
correct and that our forward-looking statements, including
statements about the specific share repurchase program forming part
of the normal course issuer bid by Royal Bank of Canada, will not be achieved. We caution
readers not to place undue reliance on these statements as a number
of risk factors could cause our actual results to differ materially
from the expectations expressed in such forward-looking statements.
These factors – many of which are beyond our control and the
effects of which can be difficult to predict – include: credit,
market, liquidity and funding, insurance, operational, regulatory
compliance, strategic, reputation, legal and regulatory
environment, competitive and systemic risks and other risks
discussed in the risks sections of our 2017 Annual Report;
including global uncertainty and volatility, elevated Canadian
housing prices and household indebtedness, information technology
and cyber risk, regulatory change, technological innovation and new
entrants, global environmental policy and climate change, changes
in consumer behaviour, the end of quantitative easing, the
business and economic conditions in the geographic regions in which
we operate, the effects of changes in government fiscal, monetary
and other policies, tax risk and transparency and environmental and
social risk.
We caution that the foregoing list of risk factors is not
exhaustive and other factors could also adversely affect our
results. When relying on our forward-looking statements to make
decisions with respect to us, investors and others should carefully
consider the foregoing factors and other uncertainties and
potential events. Material economic assumptions underlying the
forward looking-statements contained in this press release are set
out in the Economic, market and regulatory review and outlook
section and for each business segment under the Strategic
priorities and Outlook headings in our 2017 Annual Report. Except
as required by law, we do not undertake to update any
forward-looking statement contained in this press release.
SOURCE Royal Bank of Canada