Friday, April 24, 2015

Loblaw to buy back up to 21.93 million shares

2015-04-24 09:26 ET - News Release

Ms. Sophia Bisoukis reports
The Toronto Stock Exchange has accepted a notice filed by Loblaw Companies Ltd. of its intention to make a normal course issuer bid (NCIB). The TSX notice provides that Loblaw may, during the 12-month period commencing April 28, 2015 and terminating April 27, 2016, purchase up to 21,931,288 of Loblaw's common shares (Common Shares), representing approximately 10% of the public float, by way of a NCIB on the TSX or through alternative trading systems. As of April 20, 2015 Loblaw had 412,628,020 outstanding Common Shares. Based on the average daily trading volume of 553,419 during the last six months, daily purchases will be limited to 138,355 Common Shares, other than block purchase exceptions.

Purchases of Common Shares will be made in open market transactions on the TSX or through alternative trading systems. In addition, Loblaw may enter into forward purchase or swap contracts in connection with Common Shares which may be settled by physical settlement, cash settlement or a combination thereof. The forward price will be based on market price, dividend yield and market interest rates. Decisions regarding the timing of future purchases of Common Shares will be based on market conditions, share price and other factors. Loblaw may elect to suspend or discontinue its NCIB at any time. Common Shares purchased under the NCIB will be cancelled or used in connection with the settlement of restricted share units or performance share units. Loblaw believes that the market price of Common Shares could be such that their purchase may be an attractive and appropriate use of corporate funds. Loblaw may also use its NCIB to acquire the number of Common Shares that are issued pursuant to the exercise of options in order to offset the dilutive effect of options that have been exercised. Within the past 12 months 5,350,703 million Common Shares have been purchased at a weighted average price of $56.05 pursuant to its previous NCIB.
From time to time, when Loblaw does not possess material non-public information about itself or its securities, it may enter into a pre-defined plan with its broker to allow for the purchase of Common Shares at times when Loblaw ordinarily would not be active in the market due to its own internal trading blackout periods and insider trading rules. Any such plans entered into with Loblaw's broker will be adopted in accordance with the requirements of applicable Canadian securities laws.

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