CN announces new share repurchase program, declares fourth-quarter
2012 quarterly cash dividend
MONTREAL,
Oct. 22, 2012 /CNW Telbec/ - CN (TSX:
CNR) (NYSE: CNI) announced today that its Board of Directors has
authorized a new normal-course-issuer bid to purchase, for
cancellation, up to C$1.4 billion in
common shares, not to exceed 18 million common shares, representing
4.75 per cent of the common shares issued and outstanding of the
Company not held by insiders on Oct. 15,
2012. Approximately 431.5 million CN common shares were
issued and outstanding on that date.
CN repurchased 16.7 million common shares under its share
repurchase program announced in October
2011, at a weighted-average price of C$80.84 per share, excluding brokerage fees,
returning almost C$1.4 billion to
shareholders.
The new repurchase program - starting on Oct. 29, 2012, and ending no later than
Oct. 28, 2013 - will be conducted
through a combination of discretionary transactions and automatic
repurchase plans through the facilities of the Toronto and New
York stock exchanges, or alternative trading systems, if
eligible, and will conform to their regulations. Toronto Stock
Exchange (TSX) rules will permit CN to purchase daily, through TSX
facilities, a maximum of 202,935 common shares under the Company's
new repurchase program. Purchases under the normal-course-issuer
bid will be made by means of open market transactions or such other
means as the TSX or a securities-regulatory authority may permit,
including private agreements under an issuer bid exemption order
issued by a securities regulatory authority in Canada.
The price to be paid by CN for any common shares will be the
market price at the time of acquisition, plus brokerage fees, and
purchases made under an issuer bid exemption order will be at a
discount to the prevailing market price as per the terms of the
order.
CN's management and Board of Directors believe that the
repurchase by the Company of its shares represents an appropriate
use of its funds.
Luc Jobin, CN executive vice-president and chief financial
officer, said: "CN's strong record of financial performance has
enabled the Company to reward its shareholders with close to
C$3.5 billion in share buy-backs
since 2010. The launch of a new share repurchase program to return
additional cash to its shareholders, while continuing to pursue
other business opportunities, confirms CN's commitment to create
shareholder value."
CN also announced today that its Board of Directors has approved
a fourth-quarter 2012 dividend on the Company's common shares
outstanding. A quarterly dividend of thirty-seven and one-half
cents (C$0.375) per common share will
be paid on Dec. 31, 2012, to
shareholders of record at the close of business on Dec. 10, 2012.
Forward-Looking Statements
Certain information included in this news release constitutes
"forward-looking statements" within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and under Canadian securities laws,
including potential purchases of common shares for cancellation
under a normal course issuer bid. CN cautions that, by their
nature, these forward-looking statements involve risk,
uncertainties and assumptions, and are subject to our board's
discretion in respect of the declaration of dividends. The Company
cautions that its assumptions may not materialize and that the
current economic conditions render such assumptions, although
reasonable at the time they were made, subject to greater
uncertainty.
Important risk factors that could affect the above
forward-looking statements include, but are not limited to, the
effects of general economic and business conditions, industry
competition, inflation, currency and interest rate fluctuations,
changes in fuel prices, legislative and/or regulatory developments,
compliance with environmental laws and regulations, actions by
regulators, various events which could disrupt operations,
including natural events such as severe weather, droughts, floods
and earthquakes, labor negotiations and disruptions, environmental
claims, uncertainties of investigations, proceedings or other types
of claims and litigation, risks and liabilities arising from
derailments, and other risks and assumptions detailed from time to
time in reports filed by CN with securities regulators in
Canada and the United States. Reference should be
made to "Management's Discussion and Analysis" in CN's annual and
interim reports, Annual Information Form and Form 40-F filed with
Canadian and U.S. securities regulators, available on CN's website,
for a summary of major risks and assumptions.
CN assumes no obligation to update or revise forward-looking
statements to reflect future events, changes in circumstances, or
changes in beliefs, unless required by applicable Canadian
securities laws. In the event CN does update any forward-looking
statement, no inference should be made that CN will make additional
updates with respect to that statement, related matters, or any
other forward-looking statement.
CN - Canadian National Railway Company and its operating railway
subsidiaries - spans Canada and
mid-America, from the Atlantic and Pacific oceans to the
Gulf of Mexico, serving the ports
of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New
Orleans, and Mobile, Ala.,
and the key metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth,
Minn./Superior, Wis.,
Green Bay, Wis., Minneapolis/St. Paul, Memphis, and Jackson, Miss., with connections to all points
in North America. For more
information on CN, visit the Company's website at www.cn.ca.
SOURCE CN