BRAMPTON, ON, Feb. 25, 2020 /CNW/ - (TSX: L; TSX:
WN) – Loblaw Companies Limited (Loblaw) and George Weston
Limited (GWL) jointly announce today that the Toronto Stock
Exchange (TSX) has accepted an amendment to Loblaw's normal course
issuer bid (NCIB). The amendment will permit GWL to sell common
shares (Common Shares) of Loblaw in connection with Loblaw's NCIB
in order for GWL to maintain its proportionate interest in Loblaw.
GWL is the majority owner of Loblaw and holds approximately 52.2%
of the issued and outstanding Common Shares.
"Following the acquisition of Shoppers Drug Mart in 2014, George
Weston Limited's ownership interest was reduced to 46% of the
issued and outstanding shares of Loblaw," said Galen G. Weston, Chairman and Chief Executive
Officer of George Weston Limited. "At that time, we set a target to
return to a majority ownership position in Loblaw, which we have
achieved. The current plan is that we will accumulate approximately
$2 billion of cash through
participation in the Loblaw NCIB and cash generated from our
other businesses. GWL is committed to its control position in
Loblaw and stands by Loblaw's strategy."
The anticipated accumulation represents an incremental
$1.3 billion to GWL's current cash
position. The proceeds will provide GWL the opportunity
to deploy capital across its portfolio of companies in retail,
real estate and consumer goods to drive growth. GWL's
participation assumes Loblaw will continue to deploy capital to its
share buyback program and is subject to applicable regulatory
approvals.
Loblaw's NCIB provides that Loblaw may, during the 12-month
period from May 1, 2019 (Effective
Date) to April 30, 2020, purchase up
to 18,455,884 Common Shares, representing approximately 5% of the
issued and outstanding Common Shares as at the Effective Date, by
way of the NCIB on the TSX or through alternative trading systems
or by such other means as may be permitted by the TSX or under
applicable law. Based on the average daily trading volume of
590,406 during the six months preceding the Effective Date, daily
purchases pursuant to the NCIB are limited to 147,601 Common
Shares, other than block purchase exceptions and purchases from
GWL. To date, an aggregate of 10,817,468 Common Shares have
been purchased by Loblaw pursuant to the NCIB.
Loblaw will be permitted to purchase its Common Shares from GWL
commencing on February 26, 2020, in
accordance with an exemption granted by the TSX pursuant to its
rules, regulations and policies in connection with the NCIB in
order for GWL to maintain its proportionate percentage ownership.
The maximum number of Common Shares that may be purchased pursuant
to the NCIB will be reduced by the number of Common Shares
purchased by Loblaw from GWL.
Purchases from GWL will be made during the TSX's Special Trading
Session pursuant to an automatic disposition plan agreement (ADP
Agreement) expected to be entered into between Loblaw's broker,
Loblaw and GWL. Purchases from GWL will be made on trading days, as
required by the ADP Agreement, that Loblaw makes a purchase from
other shareholders. In the event that GWL does not sell Common
Shares on any trading day as required by the terms of the ADP
Agreement (other than as a result of a market disruption event),
the TSX exemption will cease to apply and Loblaw will not be
permitted to make any further purchases from GWL under the terms of
the NCIB.
About George Weston Limited
George Weston Limited is a Canadian public company founded in
1882. The Company operates through its three reportable operating
segments, Loblaw Companies Limited, Choice Properties Real Estate
Investment Trust and Weston Foods. Loblaw provides Canadians with
grocery, pharmacy, health and beauty, apparel, general merchandise,
financial services and wireless mobile products and services.
Choice Properties owns, manages and develops a high-quality
portfolio of commercial retail, industrial, office and residential
properties across Canada. The
Weston Foods operating segment includes a leading North American
bakery that offers packaged bread and rolls in Canada as well as frozen and artisan bread and
rolls, cakes, donuts, pies, biscuits and alternatives throughout
Canada and the U.S.
About Loblaw Companies Limited
Loblaw is Canada's food and
pharmacy leader, and the nation's largest retailer. Loblaw provides
Canadians with grocery, pharmacy, health and beauty, apparel,
general merchandise, financial services and wireless mobile
products and services. With more than 2,400 corporate, franchised
and Associate-owned locations, Loblaw, its franchisees and
Associate-owners employ approximately 200,000 full- and part-time
employees, making it one of Canada's largest private sector employers.
Loblaw's purpose – Live Life Well® – puts first the needs and
well-being of Canadians who make one billion transactions annually
in the company's stores. Loblaw is positioned to meet and exceed
those needs in many ways: convenient locations; more than 1,050
grocery stores that span the value spectrum from discount to
specialty; full-service pharmacies at nearly 1,400 Shoppers Drug
Mart® and Pharmaprix® locations and close to 500 Loblaw locations;
PC Financial® services; affordable Joe Fresh® fashion and family
apparel; and three of Canada's
top-consumer brands in Life Brand, no name® and President's
Choice.
For more information, visit Loblaw's website
at www.loblaw.ca and Loblaw's issuer profile
at www.sedar.com.
SOURCE Loblaw Companies Limited