MONTREAL, Oct. 19,
2023 /CNW/ - Yellow Pages Limited (TSX: Y) (the
"Company"), a leading Canadian digital media and marketing company,
today announced that the Board has approved a distribution to the
Company's shareholders (the "Shareholders") of approximately
$50 million by way of a share
repurchase from all shareholders pursuant to a statutory
arrangement under the Business Corporations Act
(British Columbia). The
arrangement will be effected pursuant to a plan of arrangement (the
"Arrangement") which provides that the Company will repurchase from
Shareholders pro rata an aggregate of 4,440,497 common shares at a
purchase price of $11.26 per share,
which represents the volume weighted average price for the five
consecutive trading days ending the trading day immediately prior
to October 19, 2023.
Under the Arrangement, the Company will also advance the
previously announced voluntary incremental cash contributions to
the Company's defined benefit pension plan's (the "Pension Plan")
wind-up deficit by an amount of $12
million during the year ending December 31, 2023, bringing 2023 cash payments to
the Pension Plan's wind-up deficit to $18
million by the end of the year. The incremental voluntary
cash infusion of $12 million during
the year ended December 31, 2023
represents advancing the voluntary $6
million contributions intended in years 2025 and 2026 that
were part of the Deficit Reduction Plan announced in May of 2021 to
increase the probability that the Pension Plan will be fully funded
by 2030. The probability of achieving a wind-up ratio of 100% by
2030 is dependent upon certain uncontrollable factors, including,
among others, market returns and discount rates. The Board will
continue to review the Deficit Reduction Plan annually.
The Arrangement is subject to the approval of at least 66 2/3%
of the votes cast by the holders of shares at a special meeting of
shareholders that is scheduled to be held virtually on
November 30, 2023 to approve the
Arrangement. The record date for the meeting has been set at the
close of business on October 23,
2023. The Arrangement is expected to be completed before the
end of 2023. Shareholders holding in excess of 77% of the
outstanding shares have agreed with the Company to vote in favor of
the arrangement. The Arrangement is also subject to the receipt of
the approval of the Supreme Court of British Columbia.
About Yellow Pages Limited
Yellow Pages Limited (TSX: Y) is a Canadian
digital media and marketing
company that creates opportunities
for buyers and sellers to interact and transact in the local economy. Yellow Pages
holds some of Canada's leading local online properties including YP.ca, Canada411.ca and 411.ca.
The Company also holds the YP, Canada411 and 411 mobile applications and Yellow Pages print
directories. For more information visit www.corporate.yp.ca.
Caution Concerning Forward-Looking Statements
This press release contains certain
forward-looking statements about the Arrangement within the
meaning of applicable securities laws. Completion of the
Arrangement is subject to a number of risks.
Risks that could cause our results
to differ materially from
our current expectations, and that could impact the
Arrangement, are discussed in section 5 of
our August
8, 2023 Management's Discussion and Analysis. We disclaim any intention or obligation
to update any forward-looking statements, except as required by law, even if new information
becomes available, as a result of
future events or for any other reason.
SOURCE Yellow Pages Limited