TORONTO,
May 15, 2013 /CNW/ - (TSX: WN)
- George Weston Limited ("Weston") announced today that the
Toronto Stock Exchange ("TSX") has
accepted a notice filed by Weston
of its intention to make a normal course issuer bid ("NCIB").
The NCIB notice provides that Weston may, during the 12-month period
commencing May 17, 2013 and
terminating May 16, 2014, purchase up
to 6,382,723 of Weston's common
shares ("Common Shares"), representing 5% of the 127,654,461 Common
Shares outstanding as of May 13,
2013, by way of a NCIB over the facilities of the TSX or
through alternative trading systems. Based on the average daily
trading volume of 92,233 during the last six months, daily
purchases will be limited to 23,058 Common Shares, other than block
purchase exceptions.
Purchases of Common Shares will be made in open
market transactions over the facilities of the TSX or alternative
trading systems. In addition, Weston 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. Weston may elect to suspend or discontinue its
NCIB at any time. Common Shares purchased under the NCIB will be
cancelled or transferred to and held by the Weston Employee Benefit
Plan Trust for the settlement of equity settled incentive plans.
Weston believes that the market
price of Common Shares could be such that their purchase may be an
attractive and appropriate use of corporate funds. Weston 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. Weston
purchased 807,331 Common Shares at a weighted average price of
$70.44 pursuant to its previous
NCIB.
From time to time, when Weston 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 Weston
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 the Weston's broker will be adopted in accordance
with the requirements of applicable Canadian securities laws.
About George Weston Limited
George Weston Limited is a Canadian public company founded in 1882
and through its operating subsidiaries constitutes one of
North America's largest food
processing and distribution groups. George Weston Limited has two
reportable operating segments: Weston Foods and Loblaw, which is
operated by Loblaw Companies Limited. The Weston Foods operating
segment is primarily engaged in the baking industry within
North America. Loblaw is
Canada's largest food distributor
and a leading provider of general merchandise, drugstore and
financial products and services.
SOURCE George Weston Limited