Stock Market Symbols
GIB.A (TSX)
GIB (NYSE)
www.cgi.com/newsroom
MONTRÉAL, Feb. 1, 2017
/PRNewswire/ - CGI Group Inc. (TSX: GIB.A) (NYSE: GIB) (the
"Company" or "CGI") announced today that its Board of Directors has
authorized the renewal of its Normal Course Issuer Bid ("NCIB"),
subject to acceptance by the Toronto Stock Exchange (the
"TSX").
The Company's management and Board of Directors believe that the
purchase for cancellation of Class A subordinate voting shares
("Class A Shares") of the Company is a proper use of the Company's
funds, and the NCIB will provide the Company with the flexibility
to purchase Class A Shares from time to time as the Company
considers it advisable, as part of its strategy to increase
shareholder value.
At the close of business on January 25,
2017, there were 266,980,846 Class A Shares outstanding, of
which approximately 79% were widely held (representing a public
float of 211,905,649 Class A Shares for TSX purposes).
Under the terms of the NCIB, subject to TSX acceptance, the
Company may purchase for cancellation on the open market through
the facilities of the TSX and the New York Stock Exchange and
through alternative trading systems, as well as outside the
facilities of the TSX pursuant to exemption orders issued by
securities regulatory authorities, up to 21,190,564 Class A Shares,
representing approximately 10% of the Company's public float as of
the close of business on January 25,
2017. The average daily trading volume of the Class A
Shares on the TSX for the six-month period ended December 31, 2016 was 482,128 (the "ADTV").
Consequently and in accordance with the requirements of the TSX,
the daily purchase limit under the NCIB on the TSX will be 120,532
Class A Shares, representing 25% of the ADTV. All Class A Shares
will be purchased at their market price at the time of acquisition,
except for purchases effected outside the facilities of the TSX
pursuant to exemption orders issued by securities regulatory
authorities which will be at a discount to the market price as
provided in such exemption orders. All Class A Shares purchased
under the NCIB will be cancelled.
Purchases of Class A Shares may commence on February 6, 2017 and will end on the earlier of
February 5, 2018 or the date on which the Company has either
acquired the maximum number of Class A Shares allowable under
the NCIB or otherwise decided not to make any further purchases for
cancellation under the NCIB.
The current NCIB commenced on February
11, 2016 and will end on February 3,
2017. As at January 25, 2017,
13,210,075 Class A Shares have been purchased under the current
NCIB.
CGI has implemented an automatic share purchase plan with its
designated broker in connection with the NCIB in order to allow for
share purchases for cancellation during self-imposed blackout
periods.
About CGI
Founded in 1976, CGI Group Inc. is the
fifth largest independent information technology and business
process services firm in the world. Approximately 68,000
professionals serve thousands of global clients from offices and
delivery centers across the Americas, Europe and Asia
Pacific, leveraging a comprehensive portfolio of services
including high-end business and IT consulting, systems integration,
application development and maintenance and infrastructure
management, as well as 150 IP-based services and solutions. With
annual revenue in excess of C$10
billion and an order backlog exceeding C$20 billion, CGI shares are listed on the TSX
(GIB.A) and the NYSE (GIB). Website: www.cgi.com.
Forward-Looking Statements
All statements in this
press release that do not directly and exclusively relate to
historical facts constitute "forward-looking statements" within the
meaning of Section 27A of the United States Securities Act of 1933
and Section 21E of the United States Securities Exchange Act of
1934, as amended, and are "forward-looking information" within the
meaning of Canadian securities laws. These statements and this
information represent CGI's intentions, plans, expectations and
beliefs, and are subject to risks, uncertainties and other factors,
of which many are beyond the control of the Company. These factors
could cause actual results to differ materially from such
forward-looking statements or forward-looking information. These
factors include but are not restricted to: the timing and size of
new contracts; acquisitions and other corporate developments; the
ability to attract and retain qualified employees; market
competition in the rapidly evolving information technology
industry; general economic and business conditions; foreign
exchange and other risks identified or incorporated by reference in
this press release, in CGI's annual and/or quarterly Management's
Discussion and Analysis and in other public disclosure documents
filed with the Canadian securities authorities (on SEDAR at
www.sedar.com) and the U.S. Securities and Exchange Commission (on
EDGAR at www.sec.gov), as well as assumptions regarding the
foregoing. The words "believe", "estimate", "expect", "intend",
"anticipate", "foresee", "plan", and similar expressions and
variations thereof, identify certain of such forward-looking
statements or forward-looking information, which speak only as of
the date on which they are made. In particular, statements relating
to future performance are forward-looking statements and
forward-looking information. CGI disclaims any intention or
obligation to publicly update or revise any forward-looking
statements or forward-looking information, whether as a result of
new information, future events or otherwise, except as required by
applicable law. Readers are cautioned not to place undue reliance
on these forward-looking statements or on this forward-looking
information.
SOURCE CGI Group Inc.