BRAMPTON, ON, April 11, 2012 /PRNewswire/ - (TSX:L) -
Loblaw Companies Limited (Loblaw) announced today that the
Toronto Stock Exchange (TSX) has
accepted a notice filed by Loblaw of its intention to make a normal
course issuer bid (NCIB).
The TSX notice provides that Loblaw may, during
the 12-month period commencing April 13,
2012 and terminating April 12,
2013, purchase up to 14,070,352 of Loblaw's common shares
(Common Shares), representing 5% of the 281,407,053 Common Shares
outstanding as of April 2, 2012, by
way of a NCIB on the TSX. Daily purchases will be limited to 97,829
Common Shares, other than block purchase exceptions.
Purchases of Common Shares will be made in open
market transactions on the TSX. In addition, Loblaw 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. Loblaw may elect to suspend or
discontinue its NCIB at any time. Common Shares purchased under the
NCIB will be cancelled. Loblaw believes that the market price of
Common Shares could be such that their purchase may be an
attractive and appropriate use of corporate funds. Loblaw 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. Loblaw purchased
1,076,894 Common Shares at a weighted average price of $37.13 pursuant to its previous NCIB.
From time to time, when Loblaw 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 Loblaw 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 Loblaw's broker will be adopted in accordance with the
requirements of applicable Canadian securities laws.
About Loblaw Companies Limited
Loblaw Companies Limited, a subsidiary of George Weston Limited, is
Canada's largest food retailer and
a leading provider of drugstore, general merchandise and financial
products and services. Loblaw is one of the largest private sector
employers in Canada. With more
than 1,000 corporate and franchised stores from coast to coast,
Loblaw and its franchisees employ over 135,000 full-time and
part-time employees. Through its portfolio of store formats, Loblaw
is committed to providing Canadians with a wide, growing and
successful range of products and services to meet the everyday
household demands of Canadian consumers. Loblaw is known for the
quality, innovation and value of its food offering. It offers
Canada's strongest control
(private) label program, including the unique President's Choice®,
no name® and Joe Fresh® brands. In addition, Loblaw makes available
to consumers President's Choice Financial® services and offers the
PC® points loyalty program.
SOURCE Loblaw Companies Limited