TSX Approval of Normal Course Issuer Bid GUELPH, ON, Nov. 26, 2021 /CNW/ - Linamar Corporation ("Linamar" or the "Company") (TSX: LNR) announces that the Toronto Stock Exchange ("TSX") has accepted the Company's notice of intention to commence a Normal Course Issuer Bid (the "NCIB"). The Company believes that the NCIB is in the best interest of the Company, will increase shareholder value, and constitutes a desirable use of the Company's available funds.
Linda Hasenfratz, Chief Executive Officer of Linamar, stated: "This NCIB will help support our share price in these volatile times. Our outlook remains positive despite market challenges and we want to ensure that our share price reflects the value we are creating at Linamar."
Under the NCIB, the Company may repurchase on the open market or such other means as a securities regulatory authority in Canada may permit, at its discretion during the period commencing on November 30, 2021 and ending on the earlier of November 29, 2022 and the completion of the maximum purchases permitted under the NCIB, up to 4,421,507 outstanding common shares of the Company (the "Common Shares"), representing approximately 10% of the Company's "public float" (within the meaning of the rules of the TSX), subject to the normal terms and limitations of such an NCIB. As of November 22, 2021, the Company had 65,450,697 issued and outstanding Common Shares.
Under the TSX rules, during the six months ended October 31, 2021, the average daily trading volume of the Common Shares on the TSX was 143,379 Common Shares and, accordingly, daily purchases on the TSX pursuant to the NCIB will be limited to 35,844 Common Shares, other than purchases made pursuant to the block purchase exception. The actual number of Common Shares which may be purchased pursuant to the NCIB and the timing of any such purchases will be determined by the management of the Company, subject to applicable law and the rules of the TSX.
Purchases are expected to be made through the facilities of the TSX, or such other permitted means as a securities regulatory authority in Canada may permit (including through alternative trading systems in Canada), at prevailing market prices or as otherwise permitted. The NCIB will be funded using existing cash resources, and any Common Shares purchased by the Company under the NCIB will be cancelled.
The Company has not repurchased any of its outstanding Common Share under a normal course issuer bid in the past 12 months. Pursuant to a previous notice of intention to conduct a normal course issuer bid, the Company sought and received approval from the TSX to purchase up to 4,396,427 Common Shares for the period of March 20, 2020 to March 19, 2021.