BRAMPTON, ON, May 3, 2022 /CNW/ – L – Loblaw Companies Limited (Loblaw) today announced that the Toronto Stock Exchange (TSX) has accepted a notice filed by Loblaw regarding its intention to make a normal course issuer bid.
The TSX Notice provides that Loblaw may, during the 12-month period commencing May 5, 2022 and terminate May 4, 2023, to purchase up to 16,647,384 common shares of Loblaw (common shares), representing approximately 5% of the issued and outstanding common shares, by way of issuer bid on the TSX or through alternative trading systems or by any other means permitted by the TSX or under applicable laws. From April 21, 2022, Loblaw had 332,947,684 common shares outstanding. Based on the average daily trading volume of 503,409 over the past six months, daily purchases will be limited to 125,852 common shares, excluding bulk purchase exceptions and purchases from George Weston Limited ( GWL), the majority shareholder of Loblaw.
Loblaw will be permitted to purchase its common shares from GWL pursuant to an exemption granted by the TSX in accordance with its rules, regulations and policies relating to the issuer bid in order for GWL to retain its proportionate ownership percentage, which is consistent with dispenses it. granted by the TSX in 2020 and 2021. The maximum number of common shares that may be purchased under the issuer bid will be reduced by the number of common shares purchased by Loblaw from GWL.
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 agreements with respect to the Common Shares which may be settled by physical settlement, cash settlement or a combination of both. The forward price will be based on the market price, dividend yield and market interest rates. Loblaw may also purchase Common Shares pursuant to private agreements or share buyback programs if it receives an issuer bid exemption order permitting it to make such purchases. Any purchases of common shares made pursuant to private agreements or pursuant to share repurchase programs may be made at a discount to the prevailing market price, as contemplated by the Bid Exemption Order. relevant public buy-back.
Purchases from GWL will be made during the special trading session of the TSX pursuant to an automatic disposition plan agreement between Loblaw’s broker, Loblaw and GWL (ADP Agreement). Purchases from GWL will be made on trading days, as required by the ADP Agreement, where Loblaw makes a purchase from other shareholders. If GWL does not sell Common Shares on a 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. apply and Loblaw will not be permitted to make any further purchases from GWL pursuant to the issuer bid.
Decisions regarding the timing of future purchases of Common Shares will be based on market conditions, stock price and other factors. Loblaw may choose to suspend or discontinue its RPO at any time. Common shares purchased under the issuer bid will be canceled or used in the settlement of restricted stock units or performance stock units. Loblaw believes that the market price of the Common Shares could be such that their purchase could be an attractive and appropriate use of Company funds. Loblaw may also use its issuer bid to acquire the number of common shares that are issued upon the exercise of options to offset the dilutive effect of options that have been exercised. As part of its previous NCIB which began on May 3, 2021 and expired on May 2, 2022, Loblaw had sought and received approval from the TSX to purchase up to 17,106,459 common shares. From April 21, 2022Loblaw repurchased 11,931,967 common shares under its prior OPRNA by way of open market purchases on the TSX and exempt purchases-by-agreement, at a weighted average price of $85.98.
From time to time, when Loblaw does not have material nonpublic information about itself or its securities, it may enter into a predefined plan with its broker to permit the purchase of Common Shares at times when Loblaw would not be normally not 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.
About Loblaw Companies Limited
East Loblaw from Canada leader in food and pharmacy, and the largest retailer in the country. Loblaw provides Canadians with groceries, drugstores, health and beauty products, apparel, general merchandise, financial services, and mobile wireless products and services. With more than 2,400 corporate, franchise and associate locations, Loblaw, its franchisees and associate owners employ more than 190,000 full-time and part-time employees, making it one of from Canada largest employers in the private sector.
Loblaw’s Purpose – Live Your Life Well® – Prioritizes the needs and well-being of Canadians who make one billion transactions annually at the company’s stores. Loblaw is well positioned to meet and exceed these needs in several ways: convenient locations; over 1,050 grocery stores spanning the value spectrum from discount to specialty; full-service pharmacies at nearly 1,400 Shoppers Drug Marts® and Pharmaprix® locations and nearly 500 Loblaw locations; Financial PC® services; affordable fresh joe® fashion and family clothes; and four of from Canada Life Brand’s most popular brands®farmers marketMTno 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
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