GUELPH, ON, Nov. 26, 2021 /CNW/ - Linamar Corporation
("Linamar" or the "Company") (TSX: LNR) announces
that the Toronto Stock Exchange ("TSX") has accepted the
Company's notice of intention to commence a Normal Course Issuer
Bid (the "NCIB"). The Company believes that the NCIB is in
the best interest of the Company, will increase shareholder value,
and constitutes a desirable use of the Company's available
funds.
Linda Hasenfratz, Chief Executive
Officer of Linamar, stated: "This NCIB will help support our share
price in these volatile times. Our outlook remains positive despite
market challenges and we want to ensure that our share price
reflects the value we are creating at Linamar."
Under the NCIB, the Company may repurchase on the open market or
such other means as a securities regulatory authority in
Canada may permit, at its
discretion during the period commencing on November 30, 2021 and ending on the earlier of
November 29, 2022 and the completion
of the maximum purchases permitted under the NCIB, up to 4,421,507
outstanding common shares of the Company (the "Common
Shares"), representing approximately 10% of the Company's
"public float" (within the meaning of the rules of the TSX),
subject to the normal terms and limitations of such an NCIB. As of
November 22, 2021, the Company had
65,450,697 issued and outstanding Common Shares.
Under the TSX rules, during the six months ended October 31, 2021, the average daily trading
volume of the Common Shares on the TSX was 143,379 Common Shares
and, accordingly, daily purchases on the TSX pursuant to the NCIB
will be limited to 35,844 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 NCIB 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 as a securities regulatory
authority in Canada may permit
(including through alternative trading systems in Canada), at prevailing market prices or as
otherwise permitted. The NCIB will be funded using existing cash
resources, and any Common Shares purchased by the Company under the
NCIB will be cancelled.
The Company has not repurchased any of its outstanding Common
Share under a normal course issuer bid in the past 12
months. Pursuant to a previous notice of intention to conduct
a normal course issuer bid, the Company sought and received
approval from the TSX to purchase up to 4,396,427 Common Shares for
the period of March 20, 2020 to
March 19, 2021.
About Linamar Corporation
Linamar Corporation (TSX:LNR) is an advanced manufacturing
company where the intersection of leading-edge technology and deep
manufacturing expertise is creating solutions that power vehicles,
motion, work and lives for the future. The Company is made up of
two operating segments – the Industrial segment and the Mobility
segment, both global leaders in manufacturing solutions and
world-class developers of highly engineered products. The
Industrial segment is comprised of Skyjack and MacDon. Skyjack
manufactures scissor, boom and telehandler lifts for the aerial
work platform industry. MacDon manufactures combine draper headers
and self-propelled windrowers for the agricultural harvesting
industry. The Mobility segment is subdivided into three regional
groups: North America,
Europe and Asia Pacific. Within the Mobility segment, the
regional groups are vertically integrated operations combining
expertise in light metal casting, forging, machining and assembly
for both the global electrified and traditionally powered vehicle
markets. The Mobility segment products are focused on both
components and systems for new energy powertrains, body and
chassis, driveline, engine and transmission systems of these
vehicles. In addition to the recently formed eLIN Product Solutions
Group that focuses on Electrification, McLaren Engineering provides
design, development, and testing services for the Mobility segment.
Linamar has 26,000 employees in 60 manufacturing locations, 12
R&D centres and 25 sales offices in 17 countries in North and
South America, Europe and Asia which generated sales of $7.4 billion in 2019. For more information about
Linamar Corporation and its industry leading products and services,
visit www.linamar.com or follow us on Twitter at @LinamarCorp.
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 NCIB and any
potential share price support, 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 risks include,
but are not limited to, the market price of the Common Shares being
too high to ensure that purchases benefit the Company and its
shareholders, and other risks and uncertainties (as well as other
information related to the Company) that 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