TORONTO, May 21, 2020 /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 25, 2020 and
terminating May 24, 2021, purchase up
to 7,683,528 Weston common shares
("Common Shares"), representing 5% of the 153,670,563 Common Shares
outstanding as of May 11, 2020, by
way of a NCIB over the facilities of the TSX or through alternative
trading systems. Based on the average daily trading volume of
216,568 during the last six months, daily purchases will be limited
to 54,142 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 trusts established by Weston 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. Pursuant to its
previous NCIB, under which Weston
received approval from the TSX to purchase up to 7,676,458 Common
Shares for the period of May 23, 2019
to May 22, 2020, 504,283 Common
Shares have been purchased at a weighted average price of
$101.25.
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
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. 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.
SOURCE George Weston Limited