GUELPH, ON, Jan. 25, 2019 /CNW/ - Linamar Corporation
("Linamar" or the "Company") (TSX:LNR) today announced the Toronto
Stock Exchange (the "TSX") has approved the Company's notice of
intention to commence a Normal Course Issuer Bid (the "Bid").
"We are initiating this NCIB in recognition of what we believe
is a significant level of under valuation of Linamar stock. We do
not feel that the value of our business is being adequately
reflected in our current share price" said Linamar CEO Linda Hasenfratz.
Under the Bid, the Company may repurchase on the open market (or
as otherwise permitted), at its discretion during the period
commencing on January 29, 2019 and
ending on the earlier of January 28,
2020 and the completion of purchases under the Bid, up to
4,506,324 common shares of the Corporation (the "Common Shares"),
representing approximately 10% of the "public float" of the Common
Shares (within the meaning of the rules of the TSX), subject
to the normal terms and limitations of such a bid.
Under the TSX rules, during the six months ended December 31, 2018, the average daily trading
volume of the Common Shares on the TSX was 374,235 Common Shares
and, accordingly, daily purchases on the TSX pursuant to the Bid
will be limited to 93,558 Common Shares, other than purchases made
pursuant to the block purchase exception. The actual number of
Common Shares which may be purchased pursuant to the Bid and the
timing of any such purchases will be determined by the management
of the Company, subject to applicable law and the rules of the
TSX.
Purchases are expected to be made through the facilities of the
TSX, or such other permitted means (including through alternative
trading systems in Canada), at
prevailing market prices or as otherwise permitted. The Bid will be
funded using existing cash resources, and any Common Shares
repurchased by the Company under the Bid will be cancelled.
As of January 18, 2019, the Company had 65,357, 295 issued
and outstanding Common Shares and a "public float" of 45,063,240
Common Shares.
The Company believes that the Bid is in the best interest of the
Company and constitutes a desirable use of its funds.
About Linamar Corporation
Linamar (TSX:LNR) is a diversified global manufacturing company
of highly engineered products powering vehicles, motion, work and
lives. The Company is made up of 2 operating segments – the
Transportation segment and the Industrial segment, which are
further divided into 5 operating groups – Machining & Assembly,
Light Metal Casting, Forging, Skyjack and Agriculture, all world
leaders in the design, development and production of highly
engineered products. The Company's Machining & Assembly, Light
Metal Casting and Forging operating groups focus on precision
metallic components, modules and systems for powertrain, driveline
and body systems designed for global electrified and traditionally
powered vehicle and industrial markets. The Company's Skyjack and
MacDon companies are noted for their innovative, high quality
mobile industrial and harvesting equipment, notably class-leading
aerial work platforms, telehandlers, draper headers and
self-propelled windrowers. Linamar has more than 28,700 employees
in 60 manufacturing locations, 8 R&D centers and 25 sales
offices in 17 countries in North and South America, Europe and Asia which generated sales of $6.5 billion in 2017. For more information about
Linamar Corporation and its industry leading products and services,
visit www.linamar.com or follow us on Twitter at @LinamarCorp.
Guelph, Ontario
January 25, 2019
This release includes forward-looking statements regarding
Linamar. Such statements are based on the current expectations and
views of future events of the Company's business. In some cases,
the forward-looking statements can be identified by words or
phrases such as "may", "will", "expect", "plan", "anticipate",
"intend", "potential", "estimate", "believe" or the negative of
these terms, or other similar expressions intended to identify
forward-looking statements. The forward-looking events and
circumstances discussed in this release, including, but not limited
to future purchases of Common Shares under the Bid, may not occur
and could differ materially as a result of known and unknown risk
factors and uncertainties affecting Linamar, including risks
regarding economic factors and many other factors beyond the
control of the Company. No forward-looking statement can be
guaranteed. Forward-looking statements and information by their
nature are based on assumptions and involve known and unknown
risks, uncertainties and other factors which may cause our actual
results, performance or achievements, or industry results, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. These and other risks and uncertainties, as well as
other information related to the Company, are discussed in the
Company's various public filings available on SEDAR and can be
accessed at www.sedar.com. Accordingly, readers should not place
undue reliance on any forward-looking statements or information.
Except as required by applicable securities laws, forward-looking
statements speak only as of the date on which they are made and the
Company does not undertake any obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events, or otherwise.
SOURCE Linamar Corporation