TORONTO,
May 9, 2012 /CNW/ - (TSX: WN)
- George Weston Limited ("Weston") announced today that the
Toronto Stock Exchange ("TSX") has
accepted a notice filed by Weston
of its intention to make a normal course issuer bid ("NCIB").
The NCIB notice provides that Weston may, during the 12-month period
commencing May 11, 2012 and
terminating May 10, 2013, purchase up
to 6,409,499 of Weston's common
shares ("Common Shares"), representing 5% of the 128,189,996 Common
Shares outstanding as of April 27,
2012, by way of a NCIB over the facilities of the TSX or
through alternative trading systems (such as Alpha ATS). Daily
purchases will be limited to 23,837 Common Shares, other than
pursuant to block purchase exceptions.
Purchases of Common Shares will be made in open
market transactions over the facilities of the TSX or alternative
trading systems (such as Alpha ATS). In addition, Weston may enter into forward purchase or swap
contracts in connection with Common Shares which may be settled by
physical settlement, cash settlement or a combination thereof. The
forward price will be based on market price, dividend yield and
market interest rates.
Decisions regarding the timing of future
purchases of Common Shares will be based on market conditions,
share price and other factors. Weston may elect to suspend or discontinue its
NCIB at any time. Common Shares purchased under the NCIB will be
cancelled. Weston believes that
the market price of Common Shares could be such that their purchase
may be an attractive and appropriate use of corporate funds.
Weston may also use its NCIB to
acquire the number of Common Shares that are issued pursuant to the
exercise of options in order to offset the dilutive effect of
options that have been exercised. Weston purchased 904,260 Common Shares at a
weighted average price of $67.45
pursuant to its previous NCIB.
From time to time, when Weston does not possess material non-public
information about itself or its securities, it may enter into a
pre-defined plan with its broker to allow for the purchase of
Common Shares at times when Weston
ordinarily would not be active in the market due to its own
internal trading blackout periods and insider trading rules. Any
such plans entered into with the Weston's broker will be adopted in accordance
with the requirements of applicable Canadian securities laws.
About George Weston Limited
George Weston Limited is a Canadian public
company founded in 1882 and through its operating subsidiaries
constitutes one of North America's
largest food processing and distribution groups. George Weston
Limited has two reportable operating segments: Weston Foods and
Loblaw, which is operated by Loblaw Companies Limited. The Weston
Foods operating segment is primarily engaged in the baking industry
within North America. Loblaw is
Canada's largest food distributor
and a leading provider of general merchandise, drugstore and
financial products and services.
SOURCE George Weston Limited
