Readers are referred to the “Forward-Looking Statements” section at the end of this release.
MONTREAL, February 24, 2022 /CNW/ – Power Corporation of Canada (TSX: POW) (“Power Corporation” or the “Corporation”) announced today that it has filed with the Toronto Stock Exchange (the “TSX”), and the TSX has accepted, notice of the Company’s intention to follow the normal course issuer bid (the “NCIB”).
Under the terms of the issuer bid, the Company may purchase for cancellation, in the open market, at its discretion during the period commencing on February 28, 2022 and ending on the first of February 27, 2023 and the completion of purchases, pursuant to the issuer bid, of up to 30,000,000 subordinate voting shares of the Company (the “Subordinate Voting Shares”), representing approximately 5 .3% of the “public float” of subordinate voting shares (as defined by the rules of the TSX) as of February 14, 2022subject to the normal conditions and limitations of such offers.
Daily purchases on the TSX under the issuer bid will be limited to 430,286 subordinate voting shares, other than purchases made under the bulk purchase exception, based on daily volume average transactions for the six months ending January 31, 2022 of 1,721,145. The actual number of Subordinate Voting Shares that may be purchased pursuant to the Issuer Bid and the timing of such purchases will be determined by the management of the Company, subject to applicable laws and TSX rules. Under a previous notice of intention to make a normal course issuer bid, under which Power Corporation asked the TSX to purchase up to 30,000,000 voting shares subordinate and which has been accepted by the TSX on February 23, 2021 and expires on February 24, 2022Power Corporation had, as of February 23, 2022purchased 4,772,600 subordinate voting shares on the open market at an average purchase price of $38.18 per share.
Purchases under the issuer bid are expected to be made through the facilities of the TSX or alternative trading systems in Canada, at prevailing market prices. The issuer bid will be funded from Power Corporation’s existing cash, and all subordinate voting shares purchased by the Corporation pursuant to the issuer bid will be cancelled.
From February 14, 2022the Company had 621,593,906 subordinate voting shares issued and outstanding and a “public float” (as defined by TSX rules) of 569,801,166 subordinate voting shares.
Power Corporation believes that the issuer bid will provide the flexibility needed to manage the Corporation’s capital position while generating value for shareholders.
Power Corporation has entered into an automatic stock purchase plan (an “ASPA”) with a Designated Broker to permit the purchase of subordinate voting shares under the issuer bid at times when the Company would normally not be permitted to purchase shares due to regulatory restrictions or self-imposed blackout periods. The ASPP has been pre-cleared by the TSX and is effective February 28, 2022the start date of the takeover bid.
About Power Corporation
Power Corporation is an international management and holding company that focuses on financial services in North America, Europeand Asia. Its main holdings are leading insurance, pensions, wealth management and investment businesses, including a portfolio of alternative asset investment platforms. To learn more, visit www.PowerCorporation.com.
Certain statements contained in this press release, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect the Company’s current expectations. Forward-looking statements are provided to present information about management’s current expectations and plans regarding the future, and the reader is cautioned that such statements may not be appropriate for other purposes. These statements may include, but are not limited to, statements regarding operations, activities, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, objectives, ongoing objectives , the Company’s strategies and outlook and related statements of the Company’s intent. to commence the issuer bid and the timing and amount of any purchase of subordinate voting shares pursuant to the issuer bid and the AESP. Forward-looking statements include statements that are predictive in nature, depend on or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, ” estimates”, “seeks”, “intends”, “targets”, “projects”, “forecasts” or their negative versions and other similar expressions, or future or conditional verbs such as “may”, ” will fly”, “should”, “would” and “could”.
By its nature, this information is subject to inherent risks and uncertainties which may be general or specific and which give rise to the possibility that the expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that the assumptions correct and that the objectives, strategic goals and priorities will not be achieved. A variety of factors, many of which are beyond the control of the Company and its subsidiaries, affect the business, performance and results of the Company and its subsidiaries and their businesses, and could cause actual results materially differ from current expectations as to estimated or anticipated events or results. These factors include, but are not limited to: the impact or unforeseen impact of general economic, political and market factors on North America and internationally, fluctuations in interest rates, inflation and exchange rates, monetary policies, corporate investments and the health of local and global equity and capital markets, management of liquidity and market funding risks, risks associated with investments in private companies and illiquid securities, risks associated with financial instruments, changes in accounting policies and methods used to report the financial position (including uncertainties associated with significant judgments, estimates and assumptions), the effect of applying future accounting changes, business competition, operational and reputational risks, changes in technology, cybersecurity risks, changes in government regulations and legislation , changes in tax laws, unexpected legal or regulatory proceedings, event s catastrophic, man-made disasters, terrorist attacks, wars and other conflicts, or the outbreak of a public health pandemic or other public health crisis (such as COVID-19), the Company and its subsidiaries to enter into transactions strategies, to integrate acquisitions and to implement other growth strategies, the disposal of the Company’s interest in China Asset Management Co.Ltd. (“ChinaAMC”) to IGM Financial Inc. (“IGM”) and the sale by IGM of common stock of Great-West Lifeco Inc. to a subsidiary of Power Financial Corporation did not occur as planned, including the failure of any condition to such disposition or sale of shares, or failure to realize the anticipated benefits of such disposition and sale and the success of the Company and its subsidiaries in anticipating and managing aforementioned factors.
Readers are cautioned to carefully consider these and other factors, uncertainties and potential events and not to place undue reliance on any forward-looking statements. The information contained in the forward-looking statements is based on certain important assumptions that were applied in drawing a conclusion or making a forecast or projection, including, without limitation, the availability of cash for share repurchases entitled subordinate voting rights outstanding under the takeover bid, the existence of other uses of the Company’s cash which could be greater than the realization of buybacks under the takeover bid, compliance by third parties of their contractual obligations, compliance with applicable laws and regulations relating to the issuer bid, management’s perceptions of historical trends, current conditions and expected future developments, and other considerations deemed appropriate in the circumstances, in particular that the approvals required for the sale of the Company’s stake in ChinaAMC s will be received and that the list of factors in the preceding paragraph, collectively, are not expected to have a material i impact on the Company and its subsidiaries. Although the Company considers these assumptions to be reasonable based on information currently available to management, they may prove to be incorrect.
Except as specifically required by applicable Canadian law, the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unforeseen events, whether as a result of new information, future events or results, or otherwise.
Additional information about the risks and uncertainties of the Company’s business and the material factors or assumptions on which information in forward-looking statements is based is provided in its disclosure documents, including its MD&A and Annual Information Form. the most recent, filed with the securities authorities of Canada and available at www.sedar.com.
SOURCEPower Corporation of Canada
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