Uni-Select has announced that its board of directors has approved the renewal of its normal course issuer bid (NCIB) to repurchase some of its outstanding common shares through the facilities of the Toronto Stock Exchange (TSX) for a period of 12 months, ending Aug. 16, 2017.
Up to 2 million common shares, representing approximately 4.7 percent of the 42,231,178 common shares of Uni-Select issued and outstanding on Aug. 1 may be purchased under the NCIB. The average daily trading volume for the six months prior to Aug. 1 is 82,856 common shares. Daily repurchases will be limited to 20,714 common shares, other than block purchase exemptions. The common shares will be repurchased by Uni-Select for cancellation.
The number of common shares that Uni-Select intends to repurchase and the time of such repurchases will be determined by the company, at its discretion. The repurchase period will begin on Aug. 17 and will end on Aug. 16, 2017, or the date on which Uni-Select will have either acquired the maximum number of common shares or otherwise decided not to make any further repurchases. All the common shares acquired under the NCIB will be repurchased at their market price at the time of acquisition.
The board of directors of Uni-Select has concluded that the repurchase of up to 2 million common shares is a desirable use of funds for Uni-Select and, therefore, would be in the best interests of Uni-Select and its shareholders. During the 12 months ending on July 31, Uni-Select has repurchased 1,372,580 common shares at a weighted average price of $28.26 per share under its normal course issuer bid, which commenced on Aug. 17, 2015 and expires on Aug. 16, 2016.
Uni-Select also announced that it will enter into an automatic purchase plan agreement (APP) with a broker to allow for the purchase of its common shares under the NCIB at times when Uni-Select normally would not be active in the market due to regulatory restrictions or self‐imposed trading blackout periods. Before entering into a blackout period, Uni-Select may, but is not required to, instruct the designated broker to make purchases under the NCIB in accordance with the terms of the APP. Such purchases will be determined by the broker in its sole discretion based on parameters established by Uni-Select prior to the blackout period in accordance with TSX rules and the terms of the APP. The terms of the APP will be pre-cleared by the TSX. Outside of these pre-determined blackout periods, common shares will be purchased in accordance with management’s discretion.