Toronto-based agribusiness giant George Weston Limited has announced that its board of directors has authorized the purchase of up to 6,573,395 of its common shares, representing approximately 5% of the 131,467,907 common shares currently outstanding by way of normal course purchases on The Toronto Stock Exchange (TSE).
The purchases may commence on 2 April 2002, and will terminate on 1 April 2003, or on such earlier date as Geore Weston may complete its purchases pursuant to a Notice of Intention filed with the TSE.
Purchases will be made by Weston in accordance with the requirements of the TSE and the price which Weston will pay for any such common shares, will be the market price of such shares at the time of acquisition. In addition Weston intends to enter into forward purchase or swap contracts which may be settled by physical settlement, cash settlement or a combination thereof. The forward or swap price will be based on market price, dividend yield and market interest rates. Purchased Shares will be cancelled.
Weston believes that the market price of its Common Shares could be such that their purchase may be an attractive and appropriate use of corporate funds in light of potential benefits to remaining shareholders.
Weston has purchased 383,604 of its Common Shares at an average price of C$101.30 (US$63.77) within the past year under an approved Normal Course Issuer Bid which expires on 1 April 2002. During the last twelve months, the corporation has entered into swap contracts on 78,300 Common Shares at an average price of C$103.00.
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By GlobalDataGeorge Weston insists that no director, senior officer or other company insider currently intends to sell any Common Shares under this bid. However, the company said that sales by such persons through the facilities of the TSE may occur if the circumstances or decisions of any such person change.
